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Marketing Science 2020

When Consumers Learn, Money Burns: Signaling Quality via Advertising with Observational Learning and Word of Mouth

Yogesh V. Joshi1; Andrés Musalem2,3

1 University of Maryland, College Park · 2 Complex Engineering System Institute · 3 University of Chile

open access

Abstract

When consumers learn via observations or word of mouth, a firm may strategically spend more on advertising to credibly signal its quality.

DOI
10.1287/mksc.2020.1246
Sources
openalex

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