Search Results (28)

Customers’ bounded rationality significantly influences the effectiveness of advertising and related decision-making in customer-intensive services. This paper, based on the M/M/1 queuing model and incorporating the characteristics of customers’ bounded rationality, conducts an optimization analysis of the decision-making of customer-intensive service providers. In this optimization process, we use the Gumbel distribution to model the random noise in customers’ bounded rationality, where the scale parameter characterizes the degree of bounded rationality, and customers’ choices follow a multinomial logit (MNL) choice model. We adopt the symmetric Nash equilibrium to prove the uniqueness of equilibrium in the duopoly market. Furthermore, we derive the optimal service rate and corresponding advertising expenditure levels for both monopoly and duopoly markets through optimization analysis. Our findings indicate that, regardless of market structure, an increase in the scale parameter of the Gumbel distribution, which captures customers’ bounded rationality, leads service providers to adopt a lower service rate to attract customers and reduce advertising expenditures. Notably, this strategy paradoxically results in higher profits for service providers. Additionally, we mathematically prove that, in both monopoly and duopoly markets, the proportion of customers choosing to enter the system follows a unimodal function of the service rate, and a unique and stable Nash equilibrium exists. Furthermore, we find that in the duopoly market, service providers, as a competitive strategy, set a lower service rate compared to the monopoly market. However, in the duopoly market, the proportion of customers attracted by each service provider is lower than in the monopoly market. We also confirmed the results through numerical simulation analysis. Full article

In this paper, we use a theoretical model to show that the development of the tourism industry is very likely to significantly reduce environmental problems in Mongolia. Among other issues, Mongolia suffers from an excessively large livestock population, which causes considerable environmental damage. In particular, the excessive livestock population leads to the desertification of the Mongolian steppe, and the emissions of methane and nitrogen dioxide caused by the livestock contribute significantly to Mongolia’s greenhouse gas emissions. Our approach essentially relies on creating jobs in the growing tourism industry for those employed in agriculture, using appropriate economic tools. The consequences of such a change include decreasing environmental damages. Particularly, we analyze three policy measures, environmental taxes, lump-sum contributions of hotels to finance advertising, and a tax on profits, to finance advertising expenditures. To support our theoretical results, we show, using available data that it is very plausible to conclude that the GHG emissions caused by additional tourism are far less than the GHG emissions likely to be saved by our economic policy recommendations. This paper shall help economists and interested policymakers to understand how the development of tourism can reduce environmental damages. Full article

Can advertising improve firm value following an incident of negative sustainability (i.e., a negative environmental, social or governance (NESG) occurrence?) This study provides an empirical investigation into NESG, its individual domains, and the mitigating role of advertising on firm value. We investigate firm level ESG sustainability violations and any corresponding advertising expenditures, utilized to counter negative opinions. First, we examine whether an NESG occurrence reduces firm value. Next, we investigate if firms experiencing an NESG occurrence alter their advertising expenditures and assess the resulting impact of this advertising spending on firm value. Finally, we determine if certain NESG occurrences benefit more from advertising than others. Using a sample of firms which engaged in at least one NESG event between 1995 and 2019, we find that firms increase advertising as a way to engage in damage control. Increasing advertising expenditures to offset NESG occurrences ultimately impacts firm value. Specifically, increasing advertising helps to reduce the NESG occurrence’s effect on firm value, but the individual domains of ESG do not respond the same to advertising efforts, suggesting that advertising as a mitigation tool remains nuanced, with the greatest positive effect being for environmental crises, no significant effect for social crises, and a negative effect for governance crises. Full article

E-business, based on information, communication, and digital technologies, is a component of the digital economy. Furthermore, it is characterized by active development, determining the currently spreading changes in the traditional economy. The purpose of this study is to determine the impact of the digital economy on the realization of sustainable development goals and the transformation of the concept of marketing management. The following research methods were used in the study: historical method—to study the evolution of marketing management concepts; statistical analysis—to study aspects of the digital economy; correlation and regression analysis—to identify the relationship between the level of digitalization and key indicators of sustainable development and marketing management; systematic approach to consider digitalization, sustainable development and marketing as interrelated components of a single system. The article presents the relationship of sustainable development goals with the need to improve approaches to marketing management in the context of digitalization. The objectives include UN goal number 8: “Decent Work and Economic Growth”, number 9: “Innovation and Infrastructure”, and number 12: “Responsible Consumption and Production”. The paper examines the evolution in approaches to understanding marketing management in the twentieth and twenty-first centuries. Correlation and regression analysis is used to identify how digitalization affects certain factors and how these factors contribute to it. The paper analyzes the dynamism of the formation and development of the worldwide digital economy, establishes the relationship between its components, and examines their impact on the ecosystem. The dynamics of the number of Internet and social media users in the world is analyzed and the changes in global e-commerce revenue and digital advertising expenditures are estimated. The positive consequences and opportunities that arise in the digital economy are presented. The authors emphasize the transformation of the marketing management concept with regard to the goals of sustainable development. Marketing strategies and directions in state policy for regulating the impact of the digital economy on the environment, taking into account the goals of sustainable development, are proposed for business entities. Full article

This study delves into the impact of intangible and tangible investments on future earnings volatility within the European financial market context. Drawing from International Accounting Standards (IAS) 16 and 38, we examine the intricate relationship between fixed assets, expenses, and the uncertainty surrounding forthcoming earnings. Our analysis reveals that intangible assets, often associated with heightened uncertainty and risk, contribute to increased earnings volatility compared to capital expenditures. Furthermore, we find that capitalizing intangible assets serves to alleviate uncertainty, resulting in lower earnings volatility compared to expensing them. Our exploration of industries’ effects further reinforce these findings, with the effect of intangible and tangible investments on earnings volatility being more pronounced in high-tech industries than in low-tech industries. Additionally, our robustness test, utilizing goodwill as a proxy for intangible assets and property, plant, and equipment as a proxy for tangible assets, yields consistent results, further bolstering our findings. Full article

This study employs imprinting theory, cultural capital theory, and upper echelon theory to investigate the influence of the rural upbringing of board chairpersons on corporate R&D (Research and Development) and advertising expenditures, as well as the moderating impact of the chairperson’s marketing and financial experience in the competitive market environment. A binary dataset was compiled, comprising 1058 Chinese listed companies and 5434 board chairpersons as samples. Through multiple regression analysis, we established a link between board chairpersons’ rural backgrounds and short-term marketing expenditures. The findings indicate that chairpersons’ rural upbringing negatively affects R&D and advertising expenditures. Additionally, marketing experience exerts a negative moderating influence on R&D expenditure, whereas financial experience does not exhibit a significant moderating effect. Furthermore, the market growth rate positively moderates the relationship between the chairman’s rural background and R&D as well as advertising expenditures. This suggests that the external competitive environment may attenuate the conservative imprint associated with a rural upbringing. This study departs from the conventional paradigm of understanding short-term spending based solely on economic incentives, incorporating non-economic factors rooted in individual cognition and values. It introduces a fresh perspective to the examination of myopic spending and contributes to the exploration of how birthplace impacts corporate decision making. These findings offer a deeper comprehension of how the background of chairpersons influences firms’ decision-making behavior, providing valuable insights for top executives in crafting strategies and making informed decisions. Full article

The current paper aims to investigate the moderating role of liquidity in the relationship between accounting and advertising expenditures and the financial performance of small and medium enterprises (SMEs) in Jordan. Furthermore, the present paper highlights the importance of managing expenditures and improving financial performance. Since the performance of Jordanian SMEs is extremely critical, furthermore, the present paper explores the possibility of empowering these businesses in order to achieve profitability. This paper is based on descriptive statistics, regression, and correlation analysis in order to analyze the data, collecting secondary data from 200 SMEs. The results demonstrate that accounting expenditures are key factors for financial performance, especially in SMEs. Moreover, SMEs are more sensitive to liquidity challenges, which significantly impact their short-term expenditure and consequently influence their financial performance. It is evident that accounting expenditures moderated by liquidity have a positive effect on the financial performance of SMEs. However, our findings indicate a negative effect regarding the relationship between advertising expenditures and financial performance. According to the results of this study, regulators may offer new regulations and legislation in the future to the Ministry of Finance and the Amman Stock Exchange. Full article

This paper considers a dynamic Stackelberg game model for a manufacturer-led supply chain with risk aversion. Cooperative advertising strategy is applied to the marketing decisions of supply chain participants. Based on Stackelberg game and system dynamic theory, the game and complex dynamical behaviors are studied through the use of several methods, such as the stability region of the system, bifurcation diagram, attractor diagram, and the largest Lyapunov exponent diagram. The expected utilities of participants are given and compared by numerical simulation. The results illustrate that a series of variations in adjustment speed of advertising expenditure, participation rate of local advertising expenditure by manufacturer, risk tolerance levels, and the effect coefficient of advertising expenditure may cause a loss of stability to the system and evolve into chaos. Meanwhile, the Nash equilibrium point and the expected utility of the manufacturer and retailer will change greatly. The parameter control method is further applied to control the chaos phenomenon of the system effectively. By means of analyzing the impact of relevant factors on the game model, the manufacturer and retailer can make optimal strategy decisions in the supply chain competition. The findings of this study mainly include the following three aspects. Firstly, for market stability and maximizing revenue, the manufacturer adjusts the participation rate appropriately, avoiding too high or too low values. Secondly, the manufacturer will try to reduce their own risk tolerance level for the economic revenue, and the retailer appropriately adjust the risk tolerance level to adapt to their own development according to their own enterprise strategy. Finally, both the manufacturer and retailer reduce their own effect coefficients of advertising expenditure. Meanwhile, they will attempt to increase their opponent’s effect coefficient to gain the most revenue. The research results of this study can provide important reference for the advertising expenditure decision and revenue maximization of participants in the context of risk aversion. Full article

This paper explores the effect of product placement strategies on customer behavior in the Chinese context and the results will help companies in China select appropriate marketing strategies to achieve sustainable development. Following the Foote, Cone and Belding (FCB) grid model, we construct a product difference model in which products are classified into four types, namely High Involvement/Thinking, High Involvement/High Feeling, Low Involvement/Thinking, and Low Involvement/High Feeling. Further, we conduct a questionnaire survey to analyze the effect of product placement strategies on various behaviors, including awareness, recognition, attitude and purchase intention. The results of repeated measures of General Linger model suggest that Chinese customers accept product placement strategies. Furthermore, among the four product types, the positive effect of product placement strategies on customer behavior is more pronounced in the Low Involvement/High Feeling product type. However, the purchase intention of Chinese customers is stable and hard to change. The results also help the company to avoid misleading advertising and to design sustainable marketing strategies by applying more effective tools in terms of specific product types. As a result, the company will reduce financial expenditure to achieve sustainable development. Full article

Breastfeeding is essential for child survival but globally less than fifty percent of infants receive adequate breastfeeding. Gaps in breastfeeding knowledge and misinformation are widespread. Mass media aims to motivate mothers and families, encourage care-seeking, improve social norms, and counteract misleading advertising. However, the costs and coverage of mass media are not well documented. Our study provides a cost-accounting of four large-scale mass media interventions and coverage obtained through mass media. We retrospectively calculated annual costs and costs per beneficiary of mass media interventions based on expenditure records in four countries. The interventions were a part of multi-component breastfeeding strategies in Bangladesh, Burkina Faso, Nigeria, and Vietnam. Annual costs ranged from 566,366 USD in Nigeria to 1,210,286 USD in Vietnam. The number of mothers of children under two years and pregnant women ranged from 685,257 to 5,566,882, and all designated recipients reached during the life of programs ranged from 1,439,040 to 11,690,453 in Burkina Faso and Bangladesh, respectively. The cost per mother varied from USD 0.13 USD in Bangladesh to 0.85 USD in Burkina Faso. Evaluations showed that mass media interventions reached high coverage and frequent exposure. This analysis documents the financial costs and budgetary needs for implementing mass media components of large-scale breastfeeding programs. It provides annual costs, cost structures, and coverage achieved through mass media interventions in four low- and middle-income countries. Full article

Cigar consumption has increased in the U.S. over the past decade, yet gaps remain in research on cigar promotion in print magazines. This study examines ad placement, volume, ad characteristics, and associated expenditures for cigars from 2018–2021, and readership data for magazines containing cigar ads. We merged content analysis data with Kantar Media data on magazine placement and expenditures and used magazine readership data from MRI-Simmons. The only brand in print magazines was Black & Mild (B & M), a top cigar brand in the U.S. There were 30 unique B & M magazine ads and 284 occurrences (i.e., appearances in magazines), translating to $46,504,578 in expenditures. All ads featured the word “enjoy/enjoyment” and a warning label. Filtered cigars were the most featured cigar type (75%) and sweets was the most featured flavor (78%). Nearly half of the publications in which B & M were advertised in have substantial Black/African American readership and were featured in publications with disproportionate young adult and Hispanic/Latino readership. This study identified tactics used in print advertising for a top cigar brand. Future research should examine how these tactics impact consumer perceptions. Findings of cigar ads reaching vulnerable populations may inform the FDA’s efforts to reduce health disparities through regulations and public education. Full article

Simulated gambling, such as playing a virtual slot machine for points rather than money, is increasingly part of the online gaming experience for youth. This study aimed to examine (1) if youth participation in simulated gambling games is associated with participation in monetary gambling; (2) if youth participation in simulated gambling games is associated with increased risk of problematic gambling when controlling for breadth of monetary gambling (i.e., number of gambling forms); and (3) if monetary expenditure and time spent playing simulated gambling games increase the risk of problematic gambling. Two samples of Australians aged 12–17 years were recruited—826 respondents through an online panel aggregator (mean age 14.1 years) and 843 respondents through advertising (mean age 14.6 years). Aim 1 was addressed using chi-square and correlation analyses. Linear multiple regression analyses were conducted to address Aims 2 and 3. The findings in both samples supported the study’s hypotheses—that (1) youth who play simulated gambling games are more likely to participate in monetary gambling, and that (2) participation and (3) time and money expenditure on simulated gambling are positively and independently associated with risk of problematic gambling when controlling for the number of monetary gambling forms, impulsivity, age and gender. To better protect young people, simulated gambling should, at minimum, emulate the consumer protection measures required for online gambling. Full article

In the post-COVID-19 era, the founding rates of micro enterprises and startups will increase due to the low youth employment rates and increased retirement of baby boomers. Therefore, the portion of small enterprises among all enterprises is expected to grow. The rapid change in consumption patterns due to the COVID-19 pandemic has accelerated the entry of small enterprises into the online advertising market. However, advertising costs spent in running the businesses are taking up a large portion of their sales budgets due to intense competition and various advertising platforms. This study examines the decision-making system to optimize advertising expenditures considering the difference in advertising costs depending on various media types and keywords based on limited advertising budgets for stable management of small enterprises. To this end, this study modeled the advertising system of small enterprise A (Company A) with system dynamics and used the Java-based simulation software AnyLogic. Through simulation modeling, we conducted optimization analysis of two scenarios, maximum buyers and minimum advertising costs, in the post-COVID-19 era. Based on the results, this study forecast the conditions for optimization of decision-making in each advertising platform. Full article

Objective: To understand the relationship between exposure to online tobacco advertising and current smokeless tobacco use in the context of tobacco control policies. Methods: Three waves of a national probability-based sample of (n = 15,985) youth and young adults were used. Analysis consisted of GEE logistic models controlling for social media use, demographics, tobacco use, average price of smokeless tobacco inclusive of taxes, smoke-free indoor air laws (SFIA) and state tobacco control expenditures. Results: Frequent exposure to tobacco advertising on social media is associated with greater odds of current smokeless use (aOR: 2.05, 95% CI: 1.62, 2.60). Higher prices and SFIA coverage were associated with reduced current smokeless use when examined separately from other tobacco policy variables (aOR: 0.79, CI: 0.73, 0.85; aOR: 0.44, CI: 0.28, 0.70). Conclusions: Greater exposure to tobacco advertising online is associated with greater odds of smokeless use among surveyed youth and young adults. This effect of social media marketing exposure on smokeless use outweighs the mitigating impact of existing tobacco control policies. The findings underscore the need for strong advertising regulation of evolving tobacco products, including smokeless products, on social media and surveillance of digital marketing tactics to young people. Full article

Fibromyalgia syndrome (FMS) is a complex medical condition characterized by widespread musculoskeletal pain. To date, no gold standard treatment has been developed, and persons with FMS often seek alternative methods to control their symptoms, such as dietary supplements (DS). This study aimed to describe the use of DS in persons living with FMS and examine the associations between the use of DS and its potential predictors. We recruited a convenience sample of 504 participants (≥18 years) living with FMS. The main outcome variables included estimated expenditure on DS in the last 12 months in Norwegian kroner (NOK) and the differences between the groups of users and non-users of DS. Of the 504 participants, 430 reported having used DS, and the mean amount of money spent in the previous year was determined to be NOK 2300. The most common DS reported were vitamin D, magnesium, and omega-3 fatty acids. The predictors of being a DS user were high education, high self-reported knowledge of DS but low overall knowledge of health claims. Users of DS marketed for muscles/joints appear to spend more money on DS. The increasing availability of DS and aggressive advertising in the media through health claims stipulate the need for interventions that lead to informed decisions about DS. Full article