Competing Advertising and Pricing Strategies for Location-Based Commerce
نویسندگان
چکیده
Owing to the fast growth in smart phones and tablets as well as increasing number of downloading apps, it makes commercial sense to use the smart phones as another platform for advertising. While many advanced location-based service (LBS) apps have been proposed, the study of analysing their impacts on the marketing strategies is still little. In this paper, we study the issues of the promotion pricing scheme and mobile LBS advertising level of the stores. We will also investigate the impact of LBS on the store’s pricing strategy and corresponding profit when having an opportunity of being a first mover or facing the pressure of being a second mover to adopt mobile LBS advertising. Our results show that the stores will advertise more and give higher discounts to their customers when the proportion of consumers with a mobile device is increasing. The price and LBS advertising cost will affect the stores’ profits. We find that the economic intention to adopt LBS advertising is higher for a first mover than a second mover.
منابع مشابه
Pricing and Advertising Decisions in a Three-level Supply Chain with Nash, Stackelberg and Cooperative Games
Pricing and advertising are two important marketing strategies in the supply chain management which lead to customer demand’s increase and therefore higher profit for members of supply chains. This paper considers advertising, and pricing decisions simultaneously for a three-level supply chain with one supplier, one manufacturer and one retailer. The amount of market demand is influenced ...
متن کاملIncentive mechanism based on cooperative advertising for cost information sharing in a supply chain with competing retailers
This paper proposes a new motivation for information sharing in a decentralized channel consisting of a single manufacturer and two competing retailers. The manufacturer provides a common product to the retailers at the same wholesale price. Both retailers add their own values to the product and distribute it to consumers. Factors such as retail prices, values added to the product, and local ad...
متن کاملA model of brand competition for durable goods supply chains in a dynamic framework
Game theory is an efficient tool to represent and conceptualize the problems concerning conflict and competition. In recent years and especially for durable products, competition between domestic and foreign brands for gaining market share has received a considerable attention. This paper study electronic commerce concepts by differential game theory and introduce a novel and comprehensive mode...
متن کاملEconomic Perspectives on Digital Marketing
The rapid proliferation of business-to-consumer electronic commerce makes it an imperative to investigate marketing strategies for online shopping and to reexamine existing knowledge and assumptions regarding traditional marketing channels in the context of Internet technologies and characteristics. Microeconomics provides a rich foundation for analyzing issues pertaining to location, selling f...
متن کاملA Social Endorsing Mechanism for Location-Based Advertising
The proliferation of smartphones exploits many new opportunities for mobile advertising. Many researchers believe that mobile advertising will be not only a killer application in mobile commerce, but also a noteworthy business model for many emerging mobile applications to monetize. Location based advertising (LBA) is a new advertising that integrates mobile advertising with location based serv...
متن کامل