caa a22 4500 606223258 CHVBK 20210128101137.0 cr unu---uuuuu 210128e20150301xx s 000 0 eng 10.1007/s11129-014-9153-7 doi (NATIONALLICENCE)springer-10.1007/s11129-014-9153-7 Campbell James University of Toronto Scarborough and Rotman School of Management, Toronto, Canada aut Localized price promotions as a quality signal in a publicly observable network [Elektronische Daten] [James Campbell] This paper considers a quality signaling game in which consumers share information on quality with their neighbors in a social network. The firm chooses a set of consumers to whom to offer their product and a price across two stages of sales. When this publicly-observable localization is available, the cheapest way for the high quality seller to separate herself from a low quality seller is to initially offer the product to the smallest set of consumers who will saturate the network with word-of-mouth; targeting a set that generates less word-of-mouth will require more money-burning to successfully signal. The set is idiosyncratic and identifying it requires considering the connectivity of sets of nodes in the network collectively, rather than relying on individual measures of connectivity. Observable networks therefore enable credible signaling that is less socially wasteful than would otherwise be the case, and this benefit is greater the smaller is the set of consumers which will cover the network with word-of-mouth. Springer Science+Business Media New York, 2014 Quality signaling nationallicence Networks nationallicence Word-of-mouth nationallicence Communication nationallicence Targeting nationallicence Quantitative Marketing and Economics Springer US; http://www.springer-ny.com 13/1(2015-03-01), 27-57 1570-7156 13:1<27 2015 13 11129 https://doi.org/10.1007/s11129-014-9153-7 text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s11129-014-9153-7 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Campbell James University of Toronto Scarborough and Rotman School of Management, Toronto, Canada aut NATIONALLICENCE 773 0- Quantitative Marketing and Economics Springer US; http://www.springer-ny.com 13/1(2015-03-01), 27-57 1570-7156 13:1<27 2015 13 11129