Heterogeneous Learning and the Targeting of Marketing Communication for New Products
- Source:
- University of Chicago
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Overview: New product launches are often accompanied by extensive marketing communication campaigns. Firms' allocation decisions for these marketing communication expenditures have two dimensions - across consumers and over time. What makes this problem hard in the case of new products is that consumers are uncertain about the quality of new products and learn about them through marketing communication. Further, different consumers may have different rates of learning about product quality, i.e. there may be heterogeneous learning. Thus, consumer responsiveness to marketing communication would vary along two dimensions. One conducts the analysis on a unique panel dataset of physicians, where one observes prescription decisions and detailing (salesforce efforts) at the individual physician-level for a new prescription drug category.
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Format: PDF | Size: 520KB | Date: Aug 2004 | Pages: 54
