Competitive persuasive advertising under consumer loss aversion
Abstract
I present a model to describe the effects of persuasive advertising targeted at consumers with expectation-based reference-dependent preferences. Persuasive advertising is competitive and increases the salience of advertised products while decreasing the salience of competing products. Consumers’ gain–loss utility associated with the expectation to buy the most salient product is inflated, while gain–loss utility associated with the expectation...
Paper Details
Title
Competitive persuasive advertising under consumer loss aversion
Published Date
Dec 1, 2019
Journal
Volume
185
Pages
108690 - 108690
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