By Jeffrey James
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Additional resources for Consumer Choice in the Third World: A study of the welfare effects of advertising and new products in a developing country
D. ) (Penguin, 1971). 11. R. E. Kirk and D. F. ), vol. 6 (Interscience, 1963-70). 42 Consumer Choice in the Third W or/d 12. Engel, Blackwell and Kollat, op. , p. 600 (emphasis in the original). In the light of these examples it is interesting to recall Boulding's view of how advertising works. Thus 'all the arts of psychology- particularly that of association- are used to persuade consumers'. See K. ), vol. I (Harper and Row, 1966)p. 513 (emphasis added). 13. The following section is based on P.
The attractiveness of the unchosen alternative is also a function of whether it possesses any features not embodied in the chosen good. Thus for many people using cars that are not automatic, dissonance may be higher as a result of the presence of the automatic varieties among the unchosen alternatives. A second determinant of the amount of dissonance which is aroused after choice is the number of rejected alternatives. With other factors given, dissonance will be greater the more numerous are the unchosen brands.
3 illustrates one such case. The figure shows a situation of four goods and two characteristics. ABC is the initial efficiency frontier. Commodity Z is inefficient and does not form part of the efficiency frontier (if the entire budget were spent on it point P, which is inside the frontier, would be attained). It is now assumed that as a result of advertising the consumer overestimates the extent to which good Z possesses both characteristics. Consumer Choice in the. 3 The effect of advertising on consumption efficiency Specifically, he imagines that instead of reaching only point P, he could actually reach P' by spending his entire budget on good Z The 'notional' efficiency frontier thus becomes ABP' C.