Information Gathering and Marketing
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Consumers have only partial knowledge before making a purchase decision, but can choose to acquire more-detailed information. A rm can make it easier or harder for these consumers to obtain such information. We explore consumersinformation gathering and the rms inte- grated strategy for marketing, pricing, and investment in ensuring quality. In particular, we highlight that when consumers are ex-ante heterogeneous, the rm might choose an intermedi- ate marketing strategy for two quite di¤erent reasons. First, it serves as a non-price 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...
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