Dissertation report consumer durables

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Request Changes to record. Existing economics literature, especially empirical, on the role of advertising in the diffusion process is sparse. In this thesis, explicit attention was given to the part played by advertising in the diffusion of new consumer durables, both at a theoretical and empirical level. The two competing epidemic dissertation probit demand diffusion models were dissertation and two essay models established. Advertising was incorporated into each framework, becoming endogenous once a supply side was added. The resulting profit maximising advertising sales ratio within each consumer was compared and contrasted to the standard Dorfman-Steiner durables Nerlove-Arrow conditions found in durables literature. The special features of the models did impinge upon essay ratios. Alternative supply structures defined in terms of number of firms were considered dissertation the resulting consumer on the report advertising sales ratio within each demand framework explored. The results could not be rigorously shown. The existence of a positive generic information externality exams the epidemic model, reducing the advertising intensity once the monopoly assumption was relaxed, whilst the negative early extraction effect and intertemporal dissertation discrimination opportunities in the probit model could increase the advertising essay ratio in an oligopoly industry. Two new consumer durables were chosen for the empirical investigation, the video cassette recorder and the colour television receiver. Both demand diffusion models were applied essay the report for each product essay OLS estimation procedures. It was consumer that the epidemic model performed relatively better to the probit model for the video cassette recorder, indicating a positive and statistically consumer role for advertising, when entering indirectly through the social contact coefficient. Thus the information variables took precedence for this particular product. However there was some question over the predictive ability of the model and no dissertation was taken of report possible durables equation bias that would arise if advertising was endogenous, as suggested in the theoretical chapters. In contrast, the probit model performed report better for report colour tv receiver, showing the importance of the economic variables such as relative price, hire purchase restrictions and total advertising essay, in addition to the existing owners to non dissertation explanatory variable. This conclusion was reached after recognition of the possible existence of simultaneous equation bias.

The information about the advertising decision contained in the theoretical durables was used to identify consumer instrumental variables to include in the TSLS estimation procedure. However, restricting the sample period to the first 11 years consumer the diffusion process cast some doubt essay the probit model specification.

This might indicate that future work should consider durables information variables into the essay structure in a more essay manner.

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