Abstract
Digital video recorders (DVRs) are an emerging technology that is fundamentally changing the competitive landscape in industries that advertise on television. Perhaps the most familiar impact of DVR technology is that it enables consumers to avoid advertisements (ads) by fast forwarding through them. However, this "zipping" of ads is only one aspect of the impact of DVR technology. DVRs also collect a wealth of information at the consumer level that can be used by firms to target their ads more effectively. We examine how this targeting capability moderates the impact of ad avoidance in a competitive setting. Insights are provided on how best to manage this emerging technology in terms of the key managerial decisions of product pricing and advertising efforts, as well as its impact on profits in a competitive (duopoly) marketplace.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 951-971 |
| Number of pages | 21 |
| Journal | Decision Sciences |
| Volume | 44 |
| Issue number | 5 |
| DOIs | |
| State | Published - Oct 2013 |
| Externally published | Yes |
Keywords
- Ad Skipping Behavior
- Digital Video Recorder
- Product Competition
- Targeted Advertisements
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Strategy and Management
- Information Systems and Management
- Management of Technology and Innovation