Autonomous and advertising-dependent ‘word of mouth’ under costly dynamic pricing

Ouardighi, Fouad El; Feichtinger, Gustav; Grass, Dieter; Hartl, Richard F.; Kort, Peter M.

doi:10.1016/j.ejor.2015.11.035

Cited by 23 publications

(4 citation statements)

References 52 publications

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“…In (35) and (36), since * ≥ 0 and * > , we have 0 ≤ < ( + − )/ ( ) − 1. Therefore, when 2 > 2 , if satisfies 0 ≤ < ( + − )/ ( ) − 1, then the optimal solution of and exists as shown in (35) and 36; if not, there is no feasible solution.…”

Section: Lemma 7 For Fixed Advertising Effort Levelmentioning

confidence: 99%

“…Recently, there are increasing interests from operation researchers about the joint OM and advertising decisions. For detailed survey of the advertising effect and its extensions, we refer the interested readers to [34][35][36][37][38][39][40]. However, how to integrate the newsvendor problem, pricing, and advertising effort level with the loss aversion behavior remains unresolved.…”

Section: Literature Reviewmentioning

confidence: 99%

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Joint Inventory, Pricing, and Advertising Decisions with Surplus and Stockout Loss Aversions

Cao

Fan

et al. 2016

Discrete Dynamics in Nature and Society

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The newsvendor models considering decision-makers’ behavioral factors remain a fruitful research area in operation management field in past decade. In this paper, we further extend the current literatures to look into joint inventory, pricing, and advertising decisions considering loss aversion effects under the newsvendor setting. The purpose is to explore how the loss aversions affect the optimal policy of order quantity, price, and advertising effort level. We present an integrated utility model to measure both economic payoff and loss aversion utility of the newsvendor, where surplus loss aversion and stockout loss aversion are first separately defined and quantified. Then, we analyze the optimal solution conditions of the integrated model under exogenous and endogenous price cases, respectively. Under exogenous price case, we find that the uniquely optimal policy exists and is presented in the closed form. Under endogenous price case, the optimal policy is determined under mild conditions; we also provide the solutions when order quantity factor or advertising effort level is fixed in this case. In addition, the sensitivity analysis shows that the loss aversions affect the optimal decisions of order quantity, price, and advertising effort level in a systematic way.

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Section: Lemma 7 For Fixed Advertising Effort Levelmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Joint Inventory, Pricing, and Advertising Decisions with Surplus and Stockout Loss Aversions

Cao

Fan

et al. 2016

Discrete Dynamics in Nature and Society

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“…Online reviews published by former customers contain information about products and therefore affect the purchase decisions of potential customers. The impacts of online customer reviews on the demand of products have been underscored in previous researches [7,8]. Along with the rapid development of e-commerce and social network site, these impacts become more and more notable [9].…”

Section: Introductionmentioning

confidence: 99%

Complexity and implications on channel conflict under the uncertain impacts of online customer reviews

Guo

2019

Nonlinear Dyn

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With the development of e-commerce, the channel conflict between online channel and traditional channel becomes more and more salient. While the literature on channel conflict is abundant, the increasingly significant impacts of online customer reviews are rarely considered. Inspired by this, this paper investigates this channel conflict under the impacts of online customer reviews in a dual-channel supply chain, where channel conflict is represented by a dynamic competition between online retailer and traditional retailer, and online customer reviews affect potential customers' purchase decisions by providing information about retail prices in both channels. What is more, the uncertain impacts of online customer reviews are adopted to be consistent with the reality. On this basis, the stability of equilibrium point, complexity of channel conflict and retailers' profits are analyzed under two scenarios, depending on whether retailers have distribution information about the uncertain impacts or not. The results highlight the complexity of channel conflict under the impacts of online customer reviews and provide some implications for retailers to cope with online customer reviews.

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“…The advertisement producers invent more or less perfect "stories" in order to change the customer's mind and to get him to their side. View more by El Ouardighi et al (2016), Dehghani et al (2016), Shen et al (2016) and Chang (2009).…”

Section: Introductionmentioning

confidence: 99%

The Quality Perceived by the Young Customer Versus Coca Cola Zero Advertisement

Blecharz¹,

Štverková²

2017

Proceedings of the 2nd Czech-China Scientific Conference 2016

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Nowadays, the advertisement is one of the key activities of sale. An advertisement is not always true and sometimes it could be even misleading or false. This chapter is focused on the exemplary verification of the truth of the concrete advertisement. The verification has been provided based on the data coming from the research being provided among 300 young customers from the Czech Republic. The data have been processed statistically, and based on the hypothesis testing using one-way analysis of variance (ANOVA), the data are evaluated whether the advertisement is true or misleading. Research findings provide testimony of unfair practice of advertisement.

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Autonomous and advertising-dependent ‘word of mouth’ under costly dynamic pricing

Cited by 23 publications

References 52 publications

Joint Inventory, Pricing, and Advertising Decisions with Surplus and Stockout Loss Aversions

Joint Inventory, Pricing, and Advertising Decisions with Surplus and Stockout Loss Aversions

Complexity and implications on channel conflict under the uncertain impacts of online customer reviews

The Quality Perceived by the Young Customer Versus Coca Cola Zero Advertisement

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