Publikationstyp: Working Paper – Gutachten – Studie
Titel: Targeted information and limited attention
Autor/-in: Hefti, Andreas
Liu, Shuo
DOI: 10.5167/uzh-124916
Umfang: 42
Erscheinungsdatum: 2016
Reihe: Working paper series / Department of Economics
Reihenzählung: 230
Verlag / Hrsg. Institution: Universität Zürich
Verlag / Hrsg. Institution: Zürich
ISSN: 1664-7041
664-705X
Sprache: Englisch
Schlagwörter: Advertising; Bounded rationality; Ad avoidance; Differentiation; Information tax; Limited attention; Oligopolistic competition; Privacy concerns; Salience competition; Targeted advertising; Targeting
Fachgebiet (DDC): 659: Werbung und Öffentlichkeitsarbeit
Zusammenfassung: We examine the implications of limited consumer attention for the decisions of competing firms which consumers to target with their messages. Limited attention changes the conventional strategic role of targeted information, as information-senders may profitably intrude a competitor’s segment of prime consumers. Therefore, the presence of inattentive consumers can incentivize firms to behave as mass-advertisers, even if firms had the ability to direct their messages at infinite precision towards consumers with the most aligned preferences. Anticipating that the equilibrium information provision will not reflect their preferences, consumers with high nuisance costs optimally decide to block information. This adverse effect of information dissemination can explain the recently observed increased use of ad blocking tools by consumers, which has become a key issue to the entire advertising industry. Within the targeting framework, we further analyze the consequences of limited attention for the determinants of market shares, information taxation, attention competition between firms, the value of marketing data to firms, consumer privacy concerns and firm pricing strategies.
URI: https://digitalcollection.zhaw.ch/handle/11475/16340
Lizenz (gemäss Verlagsvertrag): Lizenz gemäss Verlagsvertrag
Departement: School of Management and Law
Organisationseinheit: Fachstelle für Wirtschaftspolitik (FWP)
Enthalten in den Sammlungen:Publikationen School of Management and Law

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