Suzuki, Toru (Economist)

2012-014

Advertising

Consideration set

Counter signaling

Limited attention

Marketing

Signaling game

In the market where inattentive buyers can fail to notice some feasible choices, the key role of marketing is to make buyers aware of products. However, the e¤ective marketing strategy is often subtle since marketing tactics can make buyers cautious. This paper provides a framework to analyze an e¤ective marketing strategy to persuade an inattentive buyer in an adverse selection environment. We investigate how an attention-grabbing marketing can "backfire" and when it can be e¤ective.