Sponsored Content Advertising in a Two-Sided Market

Sponsored content advertising, also known as native advertising, is a new ad format in which a brand’s content takes the same form and qualities of the publisher’s original content. Although many advertisers have largely embraced this new advertising format, consumers seem to react negatively toward sponsored content ads. In this paper, we present an analytical model that studies the strategic role of sponsored content advertising in a two-sided media market. We identify conditions under which competing platforms would choose sponsored content advertising over traditional advertising. Despite consumers’ negative sentiment toward sponsored content ads, they can be better off together with the advertisers when both platforms choose this ad format. In fact, we show that a certain degree of consumer disliking is necessary to make both advertisers and consumers better off with sponsored content ads. However, both competing platforms offering sponsored content ads may also result in a Prisoner’s Dilemma equilibrium outcome generating suboptimal profits. We further show that two symmetric media platforms can choose different advertising strategies, leading to an asymmetric equilibrium outcome. Lastly, we analyze how the presence of multihoming advertisers as well as an incomplete ad market coverage would affect the sponsored content ad equilibrium. This paper was accepted by Juanjuan Zhang, marketing.

PERANAN KOMUNIKASI PEMASARAN, CITRA MEREK DAN KEPERCAYAAN MEREK TERHADAP KESETIAAN MEREK

The retail business that continues to grow requires every company engaged in the retail sector to always carry out various strategies in order to expand market coverage and the number of customers. The existence of a number of loyal customers can ensure the survival of the company so that it must be continuously worked on and improved for the progress of the company. This study aims to analyze and determine the effect of marketing communication, brand image, and brand trust on brand loyalty. The research method used is a quantitative method with the analysis technique of Structural Equation Modeling (SEM). The intended respondents are Indomaret customers in the city of Surabaya, totaling 100 respondents using purposive sampling technique. The results showed that marketing communication, brand image, and brand trust had a significant effect on brand loyalty.

Designing Rental Business Based on Mobile Application

With the decline of the Indonesian motorcycle market in recent years, there is a declining performance of primary motorcycle dealers in general. The chapter proposes the mobile business model that enables to the assistance of enhancing the traditional business of PT Sejahtera Rental Utama (PT SRU), a major supplier of a two-wheel and three-wheel that supports the wide SME business in Indonesia. With wide coverage of the market owned by PT SRU, there are urgent needs to embrace mobile strategy and introduce innovative leasing strategy to strengthen its current marketing strategy. The chapter examines the use of Business Model Canvas (BMC) and Balanced Scorecard to assist the app development by providing a comprehensive overview to address the needs of customers, introducing financial measurement, comprehensive design of internal business process, and introducing innovative strategy through leasing business. The outcome of the chapter is expected to increase the company performance, enlarge market coverage, and an aggressive strategy to reach SMEs.

The Evolution of Distribution in the Luxury Sector

In today's competitive environment, it is highlighted how the digital channel has over the years become an important distribution channel for goods with a high symbolic value. During its development, it has taken on characteristics very similar to the physical channel with direct distribution models, created through active management of e-commerce sites by luxury brands, and indirectly with the presence of specialized intermediaries by product or multi-brand, often very innovative. Goods that belong to a segment of the luxury market defined as “not affordable” tend to make use of the digital channel more aimed at strengthening the heritage and elite characteristics of the brand. On the other hand, the brands of the “affordable” luxury goods approach the digital channel with a more economically return-oriented perspective, also using intermediaries that allow a higher percentage of market coverage.

The practice of rating covered bonds

This article analyses and compares the rating of covered bonds in the practice of the five credit rating companies which have 90% market coverage in the rating of European covered bonds (Moody’s, S&P, Fitch, DBRS and Scope). The rating of covered bonds tends to be excellent, it can even be significantly better than that of the issuing bank or that of the country in which the bank is located. The main reason for this are the different lines of defence laid down in regulation, which are also supported by the large-scale covered bond purchasing programme of the European Central Bank on the market’s side. The question is whether these lines of defence can really be deployed with full effectiveness in the event of significant turbulence in the real property market or a systemic banking crisis or a sovereign crisis, i.e. whether the current practice of the rating of covered bonds is not too optimistic.

Pendampingan dalam Implementasi Strategi Pemasaran Produk Olahan Susu Sapi

Usaha Bunda is a small home industry producing several cow’s milk processed products located at Maron village, Pujon Kidul, Malang. The challenge faced by this owner is the marketing aspect to define the right marketing strategy to expand the coverage and increase competitiveness. The goal of this community dedication is to help formulating and implementing the marketing strategy for the Usaha Bunda home industry. The approach is advocation in the form of assistance. Several strategy proposed was consignation with several gift shops and tourist attraction, redesign the product packaging, and creating an online shop. The outcome of assistance in marketing strategy implementation was the owner’s better understanding on the knowledge and skill of product packaging and online marketing. Additionally, the owner also confirmed that there has been an omzet increase of 1.5 to 2 times as the result of the new packaging. The online shop opened at Tokopedia marketplace also helps to expand the product promotion and market coverage without geographical and time limitation.

Product line design with vertical and horizontal consumer heterogeneity: the effect of distribution channel structure on the optimal quality and customization levels

Purpose The purpose of this study is to analyze the problem of optimal product line design in marketing channels where consumers are heterogeneous in both horizontal and vertical dimensions. Design/methodology/approach This paper develops a model to evaluate when it is preferable for a firm to extend the product line in a vertical or horizontal direction. Consumers are modeled as being vertically heterogeneous with respect to their valuation of quality and horizontally heterogeneous with respect to their preference on the esthetic component of the product. These model characteristics allow us to consider a broader set of product line extension strategies. By considering both a vertically integrated channel and a decentralized channel, this study investigates how channel structure influences optimal product line design. The problem with supplemental numerical analyses is mathematically analyzed. Findings The analysis shows that a horizontal product line extension strategy that offers the customized product can be used as an alternative to a vertical product line extension strategy. If the fixed cost is not too high, offering the customized product with low quality may be preferred to the quality-based segmentation strategy. Furthermore, the analysis shows that the channel structure is influential as the preference for the horizontal product line extension strategy is more pronounced in the decentralized channel than in the centralized channel. Research limitations/implications The analysis presented in this paper is limited by the consideration of full market coverage. Further research is needed to see how the results can be generalized to the case with partial market coverage. Practical implications The analysis suggests that a firm may consider product customization as part of its product line strategy. Information regarding market characteristics and channel structure is important when deciding on the optimal product line design. Originality/value The model reflects a more realistic marketing strategy and channel structure than previous studies that typically consider product line extension in only one direction and focus on the centralized distribution channel. Combining the standard product line extension and customization strategies also represents an important contribution to the literature. These extensions produce interesting new results and insights into a firm’s optimal product line design strategy.

E-Agriculture Platform

The study examined accessibility and effect of e-agriculture on the livelihoods of the farming households using quantitative methodology. Farmers that have used e-agriculture components in their livelihoods were interviewed. Results showed that users had a great access to e-agriculture components and it has a positive effect. Access to e-agriculture platform increases market coverage for the sales, thereby doubling their income. The e-wallet was used to purchase inputs directly from companies and deposit money via e-transaction. The e-agriculture platform facilitates easy and fast communication with extension agents and fellow farmers. In order to operate the platform effectively, poor electric power supply and network connectivity must be resolved. The concept of e-agriculture aids the transformation of agriculture production by providing a platform to obtain information and market links to dispose produces which prevent postharvest losses and enhance profit margin. The impact of e-agriculture in the livelihoods of rural people, largely depends on their accessibility to the platform.