TY - JOUR
T1 - Advertising mode of duopoly competitive enterprises based on asymmetric cost efficiency and converter preference
AU - Zhou, Huini
AU - Li, Guo
AU - Tan, Yong
N1 - Publisher Copyright:
© 2023 Elsevier B.V.
PY - 2023/11/1
Y1 - 2023/11/1
N2 - This study focuses on two types of online advertising: mass advertising and targeted advertising. First, models for equilibrium pricing and profit influencing decisions are constructed based on asymmetric cost efficiency and converter preference. Second, game theory is used to analyze two scenarios: competitive enterprises participating simultaneously in both mass advertising and targeted advertising, and only one enterprise participating in targeted advertising. The main research findings are as follows: 1) Between the two advertising modes, enterprises can realize Pareto optimization more easily when engaging in targeted advertising. 2) In terms of cost efficiency, enterprises with low cost efficiency are more likely to obtain more benefits by participating in targeted advertising. 3) As far as the preference of the converter is concerned, generally speaking, with the increase in converter preference, enterprises with converter advantages will obtain more (or the same) profits than others. 4) Both average price and high price strategy are more sensitive to advertising costs than the preference of the converter. The conclusions of this study provide a theoretical basis for enterprises to advertise and the corresponding best methods.
AB - This study focuses on two types of online advertising: mass advertising and targeted advertising. First, models for equilibrium pricing and profit influencing decisions are constructed based on asymmetric cost efficiency and converter preference. Second, game theory is used to analyze two scenarios: competitive enterprises participating simultaneously in both mass advertising and targeted advertising, and only one enterprise participating in targeted advertising. The main research findings are as follows: 1) Between the two advertising modes, enterprises can realize Pareto optimization more easily when engaging in targeted advertising. 2) In terms of cost efficiency, enterprises with low cost efficiency are more likely to obtain more benefits by participating in targeted advertising. 3) As far as the preference of the converter is concerned, generally speaking, with the increase in converter preference, enterprises with converter advantages will obtain more (or the same) profits than others. 4) Both average price and high price strategy are more sensitive to advertising costs than the preference of the converter. The conclusions of this study provide a theoretical basis for enterprises to advertise and the corresponding best methods.
KW - Advertising cost efficiency
KW - Converter preference
KW - Mass advertising
KW - Targeted advertising
UR - http://www.scopus.com/inward/record.url?scp=85176277149&partnerID=8YFLogxK
U2 - 10.1016/j.elerap.2023.101329
DO - 10.1016/j.elerap.2023.101329
M3 - Article
AN - SCOPUS:85176277149
SN - 1567-4223
VL - 62
JO - Electronic Commerce Research and Applications
JF - Electronic Commerce Research and Applications
M1 - 101329
ER -