Consumers' Evaluation of New Products: Learning from Self and Others
JOURNAL OF POLITICAL ECONOMY, Vol. 104, No. 4, August 1996
Posted: 19 May 1998
When offered a new product whose attributes are unknown, customers can determine whether they like the product by trying it themselves or can wait to observe the experience of other customers who try the product. We specify a rational decision process and investigate the implications of learning from others on the sales of new products and the impact of advertising.
JEL Classification: M31, M37, D11, L15
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