WebJul 5, 2012 · A firm may offer a low-quality product to exploit these inattentive consumers. In the unique symmetric equilibrium of the model, firms choose prices with mixed … WebDec 13, 2011 · The consumers have heterogeneous tastes for quality: for some consumers it is efficient to buy a high quality product, while for others it is efficient to buy a low quality product. In the symmetric equilibrium firms use mixed strategies that randomize both price and quality, and obtain strictly positive profits.
CiteSeerX — Inattentive Consumers and Product Quality
WebThis paper studies a model in which some consumers shop on the basis of price alone, without attention to potential differences in product quality. A firm may offer a low-quality product to exploit these inattentive consumers. In the unique symmetric equilibrium of the model, firms choose prices with mixed strategies, similarly to Varian (1980) in which … Webthat is, controlling for movie quality, being #1 is associated with a $75 mil-lion increase in revenues, which is consistent with Proposition 1 . Testing Proposition 3. Proposition 3 states that, the greater the measure of inattentive consumers (parameter /), the greater the impact of being #1 through the awareness channel. birmingham police headquarters
Marketing Strategy Final Flashcards Quizlet
WebMar 10, 2024 · Product quality refers to how well a product satisfies customer needs, serves its purpose and meets industry standards. When evaluating product quality, businesses consider several key factors, including whether a product solves a problem, works efficiently or suits customers' purposes. WebInattentive Consumers and Product Quality. Mark Armstrong and Yongmin Chen () MPRA Paper from University Library of Munich, Germany. Abstract: This paper studies a model in … WebJan 1, 2007 · In marketing research, information asymmetry suggests that consumers do not know exactly how the product is manufactured and what features it may possess (see … birmingham police museum