On the Strategic Use of Attention Grabbers

Ran Spiegler () and Kfir Eliaz

No 7863, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: When a firm decides which products to offer or put on display, it takes into account the products' ability to attract attention to the brand name as a whole. Thus, the value of a product to the firm emanates from the consumer demand it directly meets, as well as the indirect demand it generates for the firms' other products. We explore this idea in the context of a stylized model of competition between media content providers (broadcast TV channels, internet portals, newspapers) over consumers with limited attention. We characterize the equilibrium use of products as attention grabbers and its implications for consumer conversion, industry profits and (mostly vertical) product differentiation.

Keywords: Bounded rationality; Consideration sets; Conversion rate; Irrelevant alternatives; Limited attention; Marketing; Media platforms; Persuasion; Preferences over menus (search for similar items in EconPapers)
JEL-codes: D03 D11 D21 (search for similar items in EconPapers)
Date: 2010-06
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Citations: View citations in EconPapers (5)

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Journal Article: On the strategic use of attention grabbers (2011)
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