Information Gathering and Marketing
27 Pages Posted: 17 May 2010
There are 3 versions of this paper
Information Gathering and Marketing
Date Written: May 2010
Abstract
Consumers have only partial knowledge before making a purchase decision, but can acquire more-detailed information. Marketing makes it easier or harder for these consumers to do so. When consumers are ex ante heterogeneous, the firm might choose an intermediate marketing strategy for two quite different reasons. First, as a nonprice means of discrimination, it can make information only partially available, in a way that induces some, but not all, consumers to acquire the information. Second, when the firm cannot commit to a given investment in ensuring quality, the marketing and pricing strategy can act as a commitment device.
Note: Added submission date (NEG 5/28/10).
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Strategic Information Disclosure: The Case of Multi-Attribute Products with Heterogeneous Consumers
By V. Joseph Hotz and Mo Xiao
-
Strategic Information Disclosure: The Case of Multiattribute Products with Heterogeneous Consumers
By V. Joseph Hotz and Mo Xiao
-
Information Gathering Externalities in Product Markets
By Heski Bar-isaac, Guillermo Caruana, ...
-
Information Gathering Externalities in Product Markets
By Heski Bar-isaac, Guillermo Caruana, ...
-
Disclosing Multiple Product Attributes
By Monic Sun
-
Disclosing Multiple Product Attributes
By Monic Sun
-
Costly Information Disclosure in Oligopoly
By Insuk Cheong and Jeong-yoo Kim