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Author: | Zhao, H. |
Title: | Raising awareness and signaling quality to uninformed consumers: a price-advertising model |
Journal: | Marketing Science
2000 : FALL, VOL. 19:4, p. 390-396 |
Index terms: | Advertising Pricing New products |
Language: | eng |
Abstract: | The objective of this paper is to investigate the firmĀ“s optimal advertising and pricing strategies when introducing a new product. We extend the existing signaling literature on advertising spending and price by constructing a model in which advertising is used both to raise awareness about the product and to signal its quality. |
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