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Establishment
Language of instruction
English
Teaching content
INTERNATIONAL BUSINESS
Training officer(s)
G.FERRIER
Stakeholder(s)
Gary FERRIER
Présentation
Prerequisite
Students should understand the basic econonomic concepts of demand, elasticity, consumer surplus, and economies of scale.
Goal
At the end of the course, the student should be able to:
- Integrate ideas from economics, psychology, and marketing to better under advertising.
- Describe and compare the persuasive, informative, and complementary views of advertising.
- Identify the determinants of a firm's optimal level of advertising and use them to predict how the optimal level varies across time and products.
- Evaluate the effects of adverting on price, price elasticity, sales, and market share.
- Contrast advertising with other signals of product quality.
- Appraise the tax treatment of advertising expenditures.
- Summarize the economic rationale for regulating advertising.
- Explain the challenges faced by advertisers in the information age.
- Use course concepts to analyze observed advertising activities.
- Integrate ideas from economics, psychology, and marketing to better under advertising.
- Describe and compare the persuasive, informative, and complementary views of advertising.
- Identify the determinants of a firm's optimal level of advertising and use them to predict how the optimal level varies across time and products.
- Evaluate the effects of adverting on price, price elasticity, sales, and market share.
- Contrast advertising with other signals of product quality.
- Appraise the tax treatment of advertising expenditures.
- Summarize the economic rationale for regulating advertising.
- Explain the challenges faced by advertisers in the information age.
- Use course concepts to analyze observed advertising activities.
Presentation
Why study the economics of advertising?
Review needed economic concepts.
Economic functions of advertising:
Advertising as persuasion,
Advertising as information,
Advertising as value enhancing.
Derivation and determinants of the profit maximizing advertising-to-sales ratio.
The effects of advertising on price, price elasticity, sales, and market share.
Understand the need for signals and compare and contrast signals product quality, including advertising.
Duration of advertising's impact.
Advertising and the economics of attention.
Behvioral economics and advertising.
Regulation of advertising.
Review needed economic concepts.
Economic functions of advertising:
Advertising as persuasion,
Advertising as information,
Advertising as value enhancing.
Derivation and determinants of the profit maximizing advertising-to-sales ratio.
The effects of advertising on price, price elasticity, sales, and market share.
Understand the need for signals and compare and contrast signals product quality, including advertising.
Duration of advertising's impact.
Advertising and the economics of attention.
Behvioral economics and advertising.
Regulation of advertising.
Modalités
Organization
| Type | Amount of time | Comment | |
|---|---|---|---|
| Présentiel | |||
| Cours interactif | 16,00 | Four hours of classroom time over four days. | |
| Autoformation | |||
| Lecture du manuel de référence | 2,00 | ||
| Travail personnel | |||
| Charge de travail personnel indicative | 2,00 | Read course materials and complete assignments. | |
| Overall student workload | 20,00 | ||
Evaluation
Assessment will be based 3 homework assignments and 1 exam. All assessment will consist of short-answer problems or essay questions. The questions will require students to explain course concepts in context and to use course concepts to analyze observed advertising strategies.
| Control type | Duration | Amount | Weighting |
|---|---|---|---|
| Examen (final) | |||
| Examen écrit | 2,00 | 1 | 70,00 |
| Autres | |||
| Rapport écrit | 1,00 | 3 | 30,00 |
| TOTAL | 100,00 | ||
Ressources
Bibliography
The Economic Analysis of Advertising by Bagwell, available at no cost from https://academiccommons.columbia.edu/doi/10.7916/D8QZ2P6X -
Internet resources