|INSTRUCTOR DISCUSSION NOTES:
Maybe we’ll like having advertisers up in our face and on our phone
1. In a culture with “no-call lists,” with consumers who don’t want to be bothered with advertising, why would marketers want to pitch advertising to an individual’s cell phone?
It’s not the advertising itself that consumers object to, it’s the seeming randomness of the messages. Advertisers are hoping that individuals will see cellular messages as a more personalized way of advertising: People will only see what they’re interested in seeing.
2. Assume that the scenario outlined in the summary is correct, and advertisers are able to synch global positioning systems with advertising messages. What are they hoping is true about how individuals value their time?
People’s value of time must be low if they’re willing to stop and shop when they get a message.
3. What does such advertising do to individual elasticity of demand? Why?
Elasticity of demand falls because it reduces the perceived substitutability of other goods for the advertised product.
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