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While advertising can be zero sum, here are two additional dimensions you might want to consider. Billboards, like other forms of advertising, can inform. In this way Ford can talk about their new 8 seat minivan while GM talks about the more fuel efficient engine of their latest model. This can result in happier customers who value their product better and ...


4

I'd argue that the best example is Jiffy Mix, which spends literally no money on advertising, even in the form of the implicit advertising fees paid to direct marketing affiliates. They just put their product on a shelf and people buy it. We'd expect to see this no-advertising strategy more often in industries where advertising has a significant impact on ...


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Yes, marketing falls under the JEL code of M, specifically M31.


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You are missing an integration constant $$ \log\left(\frac{p + qF(t)}{1 - F(t)}\right) = (p + q)t + \color{red}{\tilde{C}} $$ This constant you can name it whatever you want, I'm going to name it as $$ \color{red}{\tilde{C}} = \color{blue}{C}(p + q) + \ln q $$ where $C$ is just another constant. So I basically changed one constant for another one (...


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A standard example would be firms like Tupperware, which employed a variant of the direct marketing model (at least historically). In this business model, Sales depend on "salesperson networking" and little else: the vintage method is for the salesperson to organize get-togethers with possible customers in houses, where the salesperson exhibits the firm's ...


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There is a vast literature in both economics and marketing on advertising. Some highlights relevant to your specific question: A classic paper (Grossman and Shapiro 1984) looks at competitive advertising and indeed finds that advertisers tend to send too many ads. Intuitively, some customers attracted by an ad aren't new demand, but rather simply stolen ...


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If the phrase pilot experiment or more famously television pilot is any indication, then pilot price is probably an initial price, one that the company experiments with when trying to find the ideal price of their product.


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Cost covers all the inputs you mentioned and markets don't need to exist. Rent seeking is a perfectly valid alternatives to markets. So having to choose (cost/spend) between different alternatives (profit) is all there is. You can even include time as a cost and reduce it to two factors.


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I'm from Canada and I work on policies supporting "clean technology" development, but its a very nascent sector from a statistical standpoint. Statistics Canada only recently formalized a (very imperfect) definition, and our federal export development branch politely puts your problem this way: "For most Canadian cleantech exporters, the ASEAN markets are ...


1

I am going to use a $t$-continuos scenario, and then discretization follows naturally. Call $f(t)$ the distribution function of the variable $t$. The survival function is just $$ S(t) = \int_t^{+\infty}f(u)~{\rm d}u \tag{1} = 1 - \int_0^t f(u)~{\rm d}u $$ It is pretty clear from here that $$ \frac{{\rm d}S}{{\rm d}t} = -f(t) \tag{2} $$ and that $\lim_{...


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Here you have a possible answer (although I am not 100% sure about it): You said Brand counts 50% and price 50%. We can consider that with higher brand utilities we get higher chance of buying, while with higher prices we get lower chance of buying the product. Following this idea, I made this equation in which both chances (of product A and B) should be ...


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A panel survey is a kind of longitudinal study. In effect the survey sample (known as the panel) is asked repeated questions over time. This allows the measurement of change over time for the units of analysis. For example you could measure unemployment by taking a random sample of the working age population and asking them whether they are working or ...


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Opinion If the leak is close to a release date, I would say most of these are made on purpose, to feed expectations, leading to greater attention and publicity (and sales). I don't see how this can be negative for the company. In technological firms, most of the features are patent-protected so they cannot be copied anyway. However, if the leak were to ...


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"Loss leader" is a term primarily from marketing. It is occasionally used by economists, but not in a formal way because its definition is insufficiently precise. To see why we have to be careful, it is useful to think about the economic principles underlying the three examples you mentioned. I do this below, but the ;tldr version is that the business ...


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The business stealing effect of advertisements was detailed in Gene M. Grossman and Carl Shapiro, "Informative Advertising with Differentiated Products", The Review of Economic Studies, Vol. 51, No. 1 (Jan., 1984), pp. 63-81. Intuitively, since the consumers attracted by advertising will be (in part) stolen from other firms, each firm imposes a ...


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It is an interesting question. Let me rephrase it slightly differently and then argue that we don't know. A Good effect, and a negative externality What you are saying is that advertisements have a negative externality. To some effect, they increase a firm's sales because customers were not aware at all about the product's existence or features. But to ...


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