Advertising strategy and contract coordination for a supply chain system: immediate and delayed effects

PurposeAfter receiving advertising messages, most consumers rarely purchase the advertised products at once, which results in a delay between advertising exposure and its effect. This paper is devoted to exploring the advertising decision and coordination issues for a supply chain system subject to advertising immediate and delayed effects.Design/methodology/approachBy applying the game theory, the differential game models with delay are constructed for the supply chain to examine the equilibrium advertising efforts, brand goodwill and the optimal profits under the different cooperation situations. A class of transfer payment contracts is designed to achieve the best outcome of the supply chain. Illustrative examples are given to demonstrate the effectiveness of addressed results and provide some managerial perspectives.FindingsIt can be found that the complete cooperation situation can stimulate the advertising investment, drive the product demand and improve the economic profit. Also, a class of transfer payment contracts is designed in this paper, such that the supply chain can perfectly realize the profit maximization, and each member can achieve the Pareto improvement.Research limitations/implicationsThis work does not address the random market environment, which can be filled in the future. Furthermore, this paper has been done in a single supply chain structure. It is an interesting future line of research when taking competitive behavior (e.g. competition among manufacturers, retailers or supply chains) into account.Practical implicationsThis study will help managers make advertising strategies, advise an optimal cooperation way and design the coordination contracts to ensure the economic development of the supply chain. These obtained conclusions may provide a valuable decision-support for marketing management.Originality/valueFor a supply chain, the most previous literature about dynamic advertising models focused on a single advertising effect-immediate effect. This work explores advertising strategy with double advertising effects and investigates the coordinating power of new transfer payment contracts.

Influence Assessment of Emotional Asymmetry on Consumer Perception of Tourist Video Advertisement (On the Example of Crimean Peninsula)

Consumer perception of advertising media is a rather complex process of selection, organization and interpretation of signals coming in the consciousness of an individual from the senses. However, based on the main provisions of information theory, corresponding feedback is the result of advertising impact, i.e. advertising review or advertising effect, which causes a lot of discussion not only in the scientific, but also in the practical sphere. A survey was conducted to determine the profiles of emotions towards tourist areas and to identify the most visited areas and factors influencing consumer behavior when choosing tourist sites for visit. Evaluation of the emotional perception of video materials was made by the method of summary assessments. The calculation method and methodology of K. Izard were used to determine the dominant emotional state of consumers of a tourist product. The study took place in several stages. At the first stage in order to assess the emotional state of respondents, they watched advertisement videos. At the second stage we conducted a score assessment of the emotional perception of video materials. At the third stage we gave a total assessment of basic emotions. At the fourth stage generalized indicators were calculated for enlarged groups of emotions. At the final stage we interpreted the obtained data. The study showed that an average assessment of the emotion of “interest” in the resorts of the eastern and western Crimea is higher than in the Crimean foothills and the southern coast. In all areas of the peninsula, there is a weak degree of experience of acute negative and anxious-depressive emotions. Tourists and residents of Crimea are focused on visiting the southern coast of Crimea. The most unpopular areas for tourism are eastern and western parts of Crimea.

Linguosemiotic Approach to the Research of Advertising Discourse (On the Material of Printed Advertising of Hi-Tech Devices and Lighting Systems)

The article deals with theoretical and practical issues of the method of interpretive linguistic semiotic analysis of advertising discourse as well as the communication strategies used by the advertiser. The authors focus on the polysemiotic advertising message, which is viewed as an act of specific communication. The authors distinguish two basic functions of advertising discourse - information and influence in order to induce the purchase of a product or service. The article makes an assumption about the existence of a special advertising reality - a secondary reality, which is modeled by the addressee of the advertising message and, using a complex of verbal and non-verbal means, describes the actual reality in special way. The choice of these means is carried out in order to maximize the impact on the recipient, to attract his attention, to achieve the final advertising effect - to induce the recipient to purchase the advertised product or service.

Research on the cooperative mechanism of government and enterprise for basin ecological compensation based on differential game

Ecological compensation is an important means of basin pollution control, the existing researches mainly focus on the government level ignoring the important role of enterprises. Therefore, this paper introduces enterprises into the process of ecological compensation. Firstly, suppose the ecological compensation system composed of government and enterprises, the government is in the dominant position. The ecological compensation input of the government and enterprise will produce social reputation, and the ecological compensation of enterprise will also produce advertising effect. Consumer demand will be affected by social reputation and advertising effect. Then, the compensation strategies of the government and enterprise are analyzed by constructing the differential game model. The research shows that under certain conditions, the cost-sharing mechanism can realize the Pareto improvement of the benefits of government, enterprise and the whole system. Under the cooperative mechanism, the benefit of the government, enterprise and the whole system is optimal. Finally, the validity of the conclusion is verified by case analysis, and the sensitivity analysis of the relevant parameters is carried out. The conclusion can provide reference for government to establish sustainable watershed ecological compensation mechanism.

Sales Strategy considering Advertising in Advance-Selling and Spot-Selling Integration Mode for Fresh Product

In this paper, we look into the optimal sales strategy of e-commerce platform which sells fresh-product advertising in advance-selling period and spot-selling period, respectively, when advance-selling and spot-selling integration mode is applied. The study found that, with the increase of advertising investment, the marginal benefit of e-commerce platform is declining; whether advertising during the advance-selling period or the advertising during the spot-selling period, the e-commerce platform can improve its profit, but under the same advertising effect factor, the optimal advertising investment for the sale period is smaller, and the profit when advertising in the advance-selling period is greater. When advertising in different periods, the optimal advertising and price strategy depends on the maximum valuation of consumers about the product and the advertising effect factor.

Bifurcation Analysis of Time-Delay Model of Consumer with the Advertising Effect

Given the economic importance of advertising and product promotions, we have developed a diffusion model to describe the impact of advertising on sales. The main message of this study is to show the effect of advertising diffusion to convert potential buyers into actual customers which may result in persistent alteration in marketing over time. This work is devoted to studying the dynamic behavior of a reaction-diffusion model and its delayed version with the advertising effect. For the non-delay model, it is proven the existence of Hopf bifurcation. Moreover, the stability and direction of bifurcation of periodic solutions are detected. On the other hand, we consider there is a lag for responding of potential buyers to the advertising. Therefore, the time delay τ is deemed as an additional factor in the diffusion model. We have determined the critical values for the delay parameter that yield periodic solutions. Furthermore, the direction and the stability of bifurcating periodic solutions is studied. For supporting the theoretical analysis and demonstrate complex dynamic behaviors, numerical simulations including families of periodic curves are given.