A Dynamic Model of Brand Choice When Price and Advertising Signal Product Quality

Publisher:
Informs
Publication Type:
Journal Article
Citation:
Marketing Science, 2008, 27 (6), pp. 1111 - 1125
Issue Date:
2008-01
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In this paper, we develop a structural model of household behavior in an environment where there is uncertainty about brand attributes and both prices and advertising signal brand quality. Four quality signaling mechanisms are at work: (1) price signals
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