Effects of Internet Sales Promotion on a Differential Advertising Model

Abstract

Advertising and sales promotion are two important specific marketing communications tools. In this paper, Internet sales promotion is introduced into a differential advertising model and investigated quantitatively. The conditions for the existence and stability of periodic solutions are obtained. Flip bifurcation of periodic solution is investigated analytically. The results show that the sales promotion parameter can modify the stability of the differential advertising model and lead to chaos through flip bifurcation, the sales level will eventually be no less than a given value by adjusting the value of the sales promotion parameter, and the optimal sales promotion strategy can lead to maximum profit. Numerical results for periodic solutions, bifurcation diagrams, and the effects of sales promotion strategies, which are illustrated with an example, are in good agreement with the theoretical analysis. These results have certain significant theoretical and practical value in related markets.

Online Shopping Sales Promo and its Perception Among Undergraduate Students in Osogbo, South Western Nigeria

“…If offline stores, make their sales promo offers known to the consumers using the internet to promote it then online stores will be at the detriment even though there are still variant advantages of shopping online and they do more of sales promo offers. This is consistent with the findings of Tarigan, Sabrina & Syahputri (2020), Jiang & Ma (2018), Chang (2017) and Gao (2015).…”

“…Where they are sure of quality product, sales promo is a significant sales driver. In fact, recent studies affirm this finding that sales promo leads to impulse purchase even when the buyer may regret the having purchased an unneeded product thereafter (Jiang & Ma, 2018;Kempa, Vebrian & Bendjeroua, 2020).…”

“…Sales promotion plays an important role in the consumer decision making process (Daniel & Mambu Bayoh, 2017, as cited in Amankwah & Asare, 2019;Jiang & Ma, 2018). Online sales promotion has many advantages compared to traditional sales promotion.…”

“…One successful case of online sales promotion is Alibaba's annual global online shopping carnival also known as Double 11 day or Single's day held every November 11. On Single's day, this shopping carnival brought the entire Chinese electronic commerce industry an astonishing record volume of transactions worth 91.2 billion RMB in 2015 and 120.7 billion RMB in 2016 (Jiang & Ma, 2018).…”

“…Just like the conventional marketing process, promotion, which is the forth "P" of the marketing mix is inevitable. Apart from other promotional mix, sales promotion is a prominent marketing communication tool adopted to engineer impulse purchases online (Jiang & Ma 2018). Online marketers adopt sales promotional strategies such as coupons, rebates, add-on products and price discounts to boost sales.…”