Online search-based advertising strategy for e-Business platform with the consideration of consumer search cost

Kybernetes ◽  
2017 ◽  
Vol 46 (2) ◽  
pp. 291-309 ◽  
Author(s):  
Buqing Ma ◽  
Xiaoyan Xu ◽  
Yanhong Sun ◽  
Yiwen Bian
Keyword(s):  
Online Advertising ◽  
Search Time ◽  
Consumer Search ◽  
Search Cost ◽  
Optimal Search ◽  
Content Type ◽  
Time Length ◽  
Advertising Strategy ◽  
Product Demand ◽  
Optimal Advertising

Purpose Consumers are increasingly using search-based advertising in e-Business platforms to seek their desirable products. Platforms will choose a centralized advertising mechanism (CAM) or decentralized advertising mechanism (DAM) to offer a search advertising service to lower consumer search cost, as represented by using search time length. It is important for the platform to decide how to choose advertising mechanisms, and how to determine the optimal advertising price and search time length. To address these issues, this study aims to develop a theoretical approach under each mechanism to examine the platform’s optimal search-based advertising strategy by considering search cost. Design/methodology/approach In this study, two models are developed to examine the optimal search-based advertising strategy by considering consumer search cost (i.e. search time length). By comparing the platform’s profits under two models, the optimal advertising strategy, search time length and price are explored. Findings It is found that when the seller’s reserve benefit is sufficiently large, the platform benefits from choosing the DAM; otherwise, the CAM is a better choice. The advertising service is usually offered with a shorter search time length accompanied by a higher charge, and a longer search time length accompanied by a lower charge. Specifically, when the seller’s reserve benefit is substantially high, a DAM that benefits both the platform and seller is a better choice. This can explain why many platforms offer advertising services with a DAM. Originality/value This paper is the first theoretical study on addressing the search-based advertising strategy, especially the choice of advertising mechanisms, in the online advertising context. It is also the first piece of analytical research that considers the effect of consumer search cost on product demand, and then examines the optimal advertising price and search cost (i.e. search time length) for online platforms.

scholarly journals Variations in American marketing practices of early 19th-century ceramic importers and dealers, reflecting culture and identity

2020 ◽  
Vol 12 (3) ◽  
pp. 345-375
Author(s):  
Neil Ewins
Keyword(s):  
19Th Century ◽  
Design Methodology ◽  
Marketing Research ◽  
Early 19Th Century ◽  
Content Type ◽  
Advertising Strategy ◽  
Political Views ◽  
The Usa ◽  
Anglo American ◽  
The 19Th Century

Purpose This paper explores the advertising strategy of crockery importers and dealers in relationship to their origins and backgrounds. This is a departure from earlier ceramic-history literature which tended to focus on the Staffordshire producers, with limited awareness on how the identity of importers and dealers influenced what products were sold, and their individual approaches to marketing. Design/methodology/approach Within a context of historical marketing research, this paper analyses newspaper advertising and commentary. It combines an examination of marketing practices with a wider consideration of the cultural identities of ceramic importers and dealers. The digitalization of historical records, combined with sophisticated search engines, makes it more feasible to examine a broader range of sources. Thus, modern research methods can enhance our understanding of production and demand and reveal how marketing strategy was diverse. Findings Awareness on how advertising was influenced by the backgrounds and socio-political views of importers and dealers demonstrates ways in which Anglo-American ceramic trade could be far more market-led. More significantly, marketing approaches were not necessarily responding to American demand, but rather that importers could engage in commissioning goods which reflected their own views on politics, religion or slavery. Originality/value Examining the advertising of importers demonstrates the complex relationship between production and ceramic demand. This paper opens up debates as to how far the advertising of other merchandise in the USA shows evidence of taking a more individual approach by the 19th century.

scholarly journals First Order Transition for the Optimal Search Time of Lévy Flights with Resetting

2014 ◽  
Vol 113 (22) ◽  
Author(s):  
Lukasz Kusmierz ◽  
Satya N. Majumdar ◽  
Sanjib Sabhapandit ◽  
Grégory Schehr
Keyword(s):  
Search Time ◽  
Order Transition ◽  
Optimal Search ◽  
Lévy Flights ◽  
First Order ◽  
Levy Flights ◽  
First Order Transition

Using rational and emotional appeals in online advertisements for Muslim customers

2014 ◽  
Vol 5 (1) ◽  
pp. 97-124 ◽  
Author(s):  
Mehdi Behboudi ◽  
Hossein Vazifehdoust ◽  
Kobra Najafi ◽  
Mina Najafi
Keyword(s):  
Latent Variables ◽  
Online Advertising ◽  
Product Involvement ◽  
Content Type ◽  
Factors Affecting ◽  
Advertising Appeals ◽  
Emotional Appeals ◽  
Advertising Strategies ◽  
Larger Sample ◽  
Selection Of

Purpose – The purpose of this study is to verify the factors affecting the use of emotional and rational appeals in online advertising among Muslim customers in Iran. Design/methodology/approach – By reviewing the literature of advertising appeals and developing a comprehensive theoretical model, the effect of rational and emotional appeals on online advertising was examined. Expert questionnaire was administered to verify the validity of collected features. The Student's t-test was utilized to analyze the data collected from 271 participants. Findings – Five latent variables, namely user type, product involvement, e-lifestyle, advertising strategies, and internet motives were examined to explain factors affecting online advertising appeals among Muslim customers in Iran. It was found that “advertising strategies” and “user type” are the most effective factors influencing Muslims customers in developing an online advertising campaign. Research limitations/implications – The sample of this study was Iranian experts and it is necessary to conduct a survey with a larger sample size. Originality/value – This study provides insights into factors affecting the selection of emotional and rational appeals in Muslims countries. Moreover, it reports the primary columns of online advertising appeals.

Click models inspired learning to rank

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amir Hosein Keyhanipour ◽  
Farhad Oroumchian
Keyword(s):  
Random Forest ◽  
Learning To Rank ◽  
Search Time ◽  
Building Blocks ◽  
Weighted Averaging ◽  
Time Behavior ◽  
Random Forest Algorithm ◽  
Content Type ◽  
Perceived Relevance ◽  
Click Models

Purpose Incorporating users’ behavior patterns could help in the ranking process. Different click models (CMs) are introduced to model the sophisticated search-time behavior of users among which commonly used the triple of attractiveness, examination and satisfaction. Inspired by this fact and considering the psychological definitions of these concepts, this paper aims to propose a novel learning to rank by redefining these concepts. The attractiveness and examination factors could be calculated using a limited subset of information retrieval (IR) features by the random forest algorithm, and then they are combined with each other to predicate the satisfaction factor which is considered as the relevance level. Design/methodology/approach The attractiveness and examination factors of a given document are usually considered as its perceived relevance and the fast scan of its snippet, respectively. Here, attractiveness and examination factors are regarded as the click-count and the investigation rate, respectively. Also, the satisfaction of a document is supposed to be the same as its relevance level for a given query. This idea is supported by the strong correlation between attractiveness-satisfaction and the examination-satisfaction. Applying random forest algorithm, the attractiveness and examination factors are calculated using a very limited set of the primitive features of query-document pairs. Then, by using the ordered weighted averaging operator, these factors are aggregated to estimate the satisfaction. Findings Experimental results on MSLR-WEB10K and WCL2R data sets show the superiority of this algorithm over the state-of-the-art ranking algorithms in terms of P@n and NDCG criteria. The enhancement is more noticeable in top-ranked items which are reviewed more by the users. Originality/value This paper proposes a novel learning to rank based on the redefinition of major building blocks of the CMs which are the attractiveness, examination and satisfactory. It proposes a method to use a very limited number of selected IR features to estimate the attractiveness and examination factors and then combines these factors to predicate the satisfactory which is regarded as the relevance level of a document with respect to a given query.

Consumer Search and Filtering on Online Retail Platforms

2020 ◽  
Vol 57 (5) ◽  
pp. 900-916
Author(s):  
Baojun Jiang ◽  
Tianxin Zou
Keyword(s):  
Consumer Search ◽  
Third Party ◽  
Demand Elasticity ◽  
Search Cost ◽  
Online Retail ◽  
The Third ◽  
Retail Prices ◽  
The Third Party

This article examines how the consumer’s search cost and filtering on a retail platform affect the platform, the third-party sellers, and the consumers. The authors show that, given the platform’s percentage referral fee, a lower search cost can either increase or decrease the platform’s profit. By contrast, if the platform optimally adjusts its referral fee, a lower search cost will increase the platform’s profit. As the consumer’s search cost decreases, if the platform’s demand elasticity increases significantly, the platform should reduce its fee, potentially resulting in an all-win outcome for the platform, the sellers, and the consumers; otherwise, a lower search cost will increase the platform’s optimal fee percentage, potentially leading to higher equilibrium retail prices. Furthermore, the availability of filtering on the platform will in expectation induce consumers to search fewer products but buy products with higher match values, and filtering can either increase or decrease equilibrium retail prices. When filtering reveals only a small amount of the products’ match-value variations, it will benefit the platform, the sellers, and the consumers. This article shows that the effects of filtering and those of a decrease in search cost are qualitatively different.

Effects of online advertising on automobile sales

2014 ◽  
Vol 52 (5) ◽  
pp. 834-851 ◽  
Author(s):  
Jianping Peng ◽  
Guoying Zhang ◽  
Shaoling Zhang ◽  
Xin Dai ◽  
Jing Li
Keyword(s):  
Online Advertising ◽  
Content Type ◽  
Search Advertising ◽  
Positive Effects ◽  
Advertising Strategies ◽  
Automobile Sales ◽  
Advertising Spending ◽  
The Relationship ◽  
Practical Implications ◽  
Allocation Strategies

Purpose – The purpose of this paper is to explore the effects of online advertising spending on automobile sales through both search and non-search advertising. Design/methodology/approach – Sales data of the top 52 vehicle models were collected in two consecutive years in China. The advertising spending data of both formats were collected from a leading consulting company and a major search engine company. Then several empirical models were proposed to evaluate the effects of online advertising on automobile sales. Two extended models were further investigated for search advertising. Findings – The results revealed that both formats of online advertising have significantly positive effects on automobile sales. However, excessive spending on non-search advertising does not help sales and a moderate budget is preferred. On the other hand, spending on search advertising has no such constraint to improve the vehicle sales. Practical implications – The empirical findings have proved the importance of online advertising to the automobile companies and thus can help companies improve their decision making in online advertising allocation strategies. Originality/value – This study provides a better understanding of the relationship between online advertising spending and automobile sales, and helps business to define sophisticated online advertising strategies to improve sales performance.

Impact of web banner advertising frequency on attitude

2018 ◽  
Vol 30 (2) ◽  
pp. 380-399 ◽  
Author(s):  
Rahim Hussain ◽  
Ahmed Shahriar Ferdous ◽  
Gillian Sullivan Mort
Keyword(s):  
Online Advertising ◽  
Repetition Effect ◽  
Brand Attitude ◽  
Moderating Effect ◽  
Future Research ◽  
Content Type ◽  
Banner Advertisements ◽  
Banner Advertisement ◽  
High Level ◽  
The Impact

Purpose The purpose of this paper is to examine whether advertising type (static or dynamic) and appeal (emotional or rational) moderate the relationship between web banner advertising frequency and consumer attitudinal response. Design/methodology/approach A laboratory experiment involving 400 participants was conducted to test for the moderating effect. Factorial ANOVA is used to measure brand attitude. Findings The results identified that the web banner advertisement type acted as a moderator between frequency and brand attitude. However, the moderating effect of banner advertisement appeal was found to be insignificant at a single banner advertisement frequency (i.e. exposure) but significantly different at a higher frequency. The study findings provide better directives for online marketers. Practical implications The major limitation is the fact that the impact of banner advertisement frequency was manipulated from one to five exposures. Future research needs to determine what happens after the fifth exposure, perhaps ten exposures or more, to determine the wear-out effect and in turn, to decide on the optimal frequency level in an effort to design more appropriate web communication strategies. Social implications The result shows that pop-up banner advertisements are intrusive, and that high level of exposures to pop-up banner advertisement could annoy online users. Thus, online advertisers should avoid repeating the pop-up banner advertisements because this could adversely affect the attitude towards the online advertising in general, and could also negatively influence attitudes towards the brand and ultimately effect online purchase. Originality/value This study contributes to the theory by providing more insights into the repetition effect, and comprehensive conclusions can be drawn based on the manipulation of banner advertisement frequency on different frequency levels. The research identifies that if the communication objective is to generate brand attitude, different strategies can be adopted depending on the banner advertisement type (pop-up vs static) and banner advertisement appeal (emotional vs rational).

Resisting stigma and evaluating realism in a direct-to-consumer advertisement for psychiatric drugs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tara Walker
Keyword(s):  
Mental Health ◽  
Mental Illness ◽  
General Population ◽  
Online Survey ◽  
Bipolar Depression ◽  
Online Advertising ◽  
Sample Population ◽  
Content Type ◽  
Direct To Consumer ◽  
Psychiatric Drugs

Purpose This study aims to examine how experience with mental illness influences perceptions of stigma and realism in a specific direct-to-consumer advertisement (DTCA) for bipolar depression. Design/methodology/approach An online survey had participants watch a 90 s advertisement for a prescription bipolar depression drug and then answer 24 questions about stigma, mental illness experience and the realism of the portrayals in the advertisement. Findings Findings show that people who identify as having experience with mental illness tend to see the ad as more stigmatizing and less realistic. Additionally, people who expressed more stigmatizing beliefs also tended to see more stigma present in the ad. Finally, the study reconfirms conclusions of previous research that people who have experience with mental health conditions possess fewer stigmatizing beliefs overall regarding mental illness. Research limitations/implications The sample population, while diverse in age and somewhat diverse in location, were highly educated, suggesting that they were not representative of the general population. Future studies may want to use more representative samples. A more nuanced approach to understanding experience is needed. While the sample in this study was purposively derived from communities with a higher rate of mental illness, a comprehensive experience scale to measure degrees of experience with mental illness would enhance understanding of this construct. Researchers may also want to look more deeply into the emotional responses of consumers who view these ads. To develop a greater understanding of the trajectory of DTCA, studies of online advertising for psychiatric drugs are needed. Practical implications The results of the study suggest that respondents with experience with mental illness may find ads that sell psychiatric medications unrealistic. This study presents the topic of realism in DTCA as an important construct for determining how consumers may perceive portrayals of disorders. Social implications The fact that people who have experience with mental illness found the Latuda ad to be generally unrealistic suggests that DTCA may be failing to represent mental illness in a way that demonstrates care for patients. Additionally, this research confirms that people who have had exposure to and experience with mental illness tend to hold less stigmatizing beliefs, (Link and Cullen, 1986; Corrigan et al., 2001; Angermeyer et al., 2004) a finding which supports the continuing project of increasing mental health literacy and awareness in the general population. Originality/value This study investigates the reactions of people who identify as having some experience with mental illness to see if they accept the portrayals of mental illness in DTCA or resist them by challenging their realism or identifying stigmatizing elements.

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

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hui Yu ◽  
Wei Yang ◽  
Na Xu ◽  
Yang Du
Keyword(s):  
Supply Chain ◽  
Profit Maximization ◽  
Chain Structure ◽  
Transfer Payment ◽  
Supply Chain System ◽  
Content Type ◽  
Delayed Effects ◽  
Advertising Effect ◽  
Chain System ◽  
Advertising Strategy

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.

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