Advertising Model Research Articles

Consumer reactions to female and male cosmetic surgery beauty in Asian advertisements

Existing research shows that the attractiveness of advertising models enhances the effectiveness of firms’ commercial messages. However, it is unclear how consumers react to models who have enhanced their physical attractiveness through cosmetic surgery. We report on three empirical studies and show that when female or male advertising models have undergone cosmetic surgery procedures, both female and male consumers are likely to notice these changes. These perceptions of cosmetic surgery result in lower evaluations of model attractiveness, particularly when the consumers assess female models, which in turn affects other advertising outcomes. However, cosmetic surgery does not reduce consumers’ perceptions of models’ pride in their own identity, which are also relevant to consumers’ evaluations of model attractiveness.

Learning Parameters for a Generalized Vidale-Wolfe Response Model With Flexible Ad Elasticity and Word-of-Mouth

In this research, we investigate a generalized form of Vidale-Wolfe (GVW) model. One key element of our modeling work is that the GVW model contains two useful indexes representing advertiser's elasticity and the word-of-mouth (WoM) effect, respectively. Moreover, we discuss some desirable properties of the GVW model, and present a deep neural network-based estimation method to learn its parameters. Furthermore, based on three realworld datasets, we conduct computational experiments to validate the GVW model and identified properties. In addition, we also discuss potential advantages of the GVW model over econometric models. The research outcome shows that both the ad elasticity index and the WoM index have significant influences on advertising responses, and the GVW model has potential advantages over econometric models of advertising, in terms of several interesting phenomena drawn from practical advertising situations. The GVW model and its deep learning-based estimation method provide a basis to support big data-driven advertising analytics and decision makings; in the meanwhile, identified properties and experimental findings of this research illuminate critical managerial insights for advertisers in various advertising forms.

Advertising in a vaccination campaign: A variable time control problem

The best way to prevent a highly contagious infection such as measles is active immunization with a suitable vaccine. Unfortunately, in the last 10 years in EU there has been a decrease in vaccinations, so that their coverage goes under the minimum level to obtain herd immunity. This is a sanitary emergency and it is connected with the “urban myth” that serious adverse neurological disorders should be attributed to vaccination. Anti-vaccination groups spread this “urban myth” by word-of-mouth communication. We model the evolution of the number of unvaccinated people assuming that a policy-maker can control this dynamics through advertising. The idea of connecting dynamic advertising models and vaccination campaign is recent and it represents some aspects of the issue that have never been explored before. From a mathematical point of view we study a variable final time optimal control problem in which the policy-maker wants to minimize the costs in order to obtain herd immunity in due time. We find the optimal solution and we obtain some prescriptions for the policy-maker.

A Joint Dynamic Pricing, Advertising, and Production Model with Inventory-Level-Dependent Goodwill

Inventory level has a significant impact on the goodwill of products to customers, which seldom becomes the focus of previous studies. In this paper, joint dynamic pricing, advertising, and production decision-making problem is investigated, where the demand rate depends on sales price and goodwill. The inventory and backlog as well as advertisement are considered as goodwill-building factors. The optimal dynamic pricing, advertising, and production policies are derived by using Pontryagin’s maximum principle. Numerical examples are provided to demonstrate the obtained results, and sensitivity analysis of main system parameters is carried out to obtain some managerial insights. We find that when the initial goodwill is relatively high, the firm’s profit first decreases and then increases with respect to the impact intensity of inventory on goodwill; otherwise, the firm always benefits from a higher impact intensity of inventory on goodwill. Furthermore, the optimal production and advertising policies are complementary caused by the feature of inventory-dependent goodwill.

Attractiveness, trustworthiness and expertise – social influencers’ winning formula?

Purpose The importance of influencer marketing is constantly growing. However, little empirical research has examined influencers’ success requirements. This study aims to fill this gap by exploring whether the requirements of influencers’ attractiveness, expertise and trustworthiness are relevant for online influencer campaigns. An entry-level luxury fashion brand is the focus of the experiment. Design/methodology/approach A total of 288 participants completed an online survey evaluating the profiles of influencers who varied in terms of the three abovementioned requirements. The impacts of these requirements on brand image, brand satisfaction and brand trust as well as purchase intention and price premium were tested via structural equation modeling. Findings The results show that the most important requirement is trustworthiness, followed by attractiveness; surprisingly, the relevance of expertise is virtually nil. Research limitations/implications To date, practitioners are still struggling with the success requirements of influencer marketing. They have focused on traditional advertising models and numeric requirements such as the amount of followers. However, regarding merely these requirements can result in wrong decisions. Considering the two requirements, attractiveness and trustworthiness, in a stronger way can provide a remedy to this struggle. In future research, the relevance of the requirements in different involvement conditions and for non-attractiveness-related products might be investigated. Originality/value To the best of the authors’ knowledge, this study is one of the first to explore the success requirements that are directly related to influencers (e.g. attractiveness) rather than numeric requirements of their profiles (e.g. page rank) and the impacts of those requirements on brand image, brand satisfaction and brand trust as well as purchase intention and price premium. It adapts the Source-Credibility Model for influencers and shows that its requirements interact in a unique way that is counterintuitive and different from other endorser types such as celebrities or salespersons.

Pricing influential nodes in online social networks

Influential nodes with rich connections in online social networks (OSNs) are of great values to initiate marketing campaigns. However, the potential influence spread that can be generated by these influential nodes is hidden behind the structures of OSNs, which are often held by OSN providers and unavailable to advertisers for privacy concerns. A social advertising model known as influencer marketing is to have OSN providers offer and price candidate nodes for advertisers to purchase for seeding marketing campaigns. In this setting, a reasonable price profile for the candidate nodes should effectively reflect the expected influence gain they can bring in a marketing campaign. In this paper, we study the problem of pricing the influential nodes based on their expected influence spread to help advertisers select the initiators of marketing campaigns without the knowledge of OSN structures. We design a function characterizing the divergence between the price and the expected influence of the initiator sets. We formulate the problem to minimize the divergence and derive an optimal price profile. An advanced algorithm is developed to estimate the price profile with accuracy guarantees. Experiments with real OSN datasets show that our pricing algorithm can significantly outperform other baselines.

Social media advertising efficiency on higher education programs

PurposeThe purpose of this study is to examine the different results and the level of success obtained with advertising campaigns developed on Facebook to promote postgraduate programs to create awareness and engagement.Design/methodology/approachThis study combined the data envelopment analysis technique to measure advertising efficiency with multidimensional scaling (MDS) representation, thus offering alternatives for practitioners and organizations on how to evaluate social advertising performance.FindingsInvestments on social paid advertising are an affordable and effective way both to promote postgraduate programs and create engagement with prospective students. Facebook advertisements maximize visibility, which improves social and online positioning and encourages student recruitment.Practical implicationsHigher education institutions can efficiently promote their programs with a minimal social investment contributing to dissemination and engagement. Compared to other forms of traditional or digital advertising, social media ads can be efficient and affordable with wider segmentation and targeting options. Moreover, results are immediate and measurable and campaigns can be instantly modified to better suit the audience’s requirements.Originality/valueThis study is unique as it offers a new, alternative way of measuring efficiency, in addition to the classic ratios of payment models in digital advertising that combine clicks and impressions, on a sector where there are few empirical studies. Moreover, it can be easily applied to many other sectors in public and private organizations.

Stochastic Optimal Control Models for Online Stores: Indefinite Horizon

In this work we propose and analyze a model which addresses the pulsing behavior of sellers in an online auction (online store). This pulsing behavior is observed when sellers switch between advertising and processing states. We assert that a seller switches her state in order to maximize her profit, and further that this switch can be identified through the seller's reputation. We find that for each seller there is an optimal reputation, i.e. the reputation at which the seller should switch her state in order to maximize her total profit. Relying on techniques of stochastic optimal control, we design a stochastic behavioral model for an online seller. This model incorporates the dynamics of resource allocation and reputation. We optimize the design model by using a stochastic advertising model put forth by Sethi (Optimal Control Applications and Methods, vol. 4, no. 2, 1983, pp. 179-184) and used effectively in Raman's more recent work (Automatica, vol. 42, no. 8, 2006, pp. 1357-1362). This model of reputation is combined with the effect of online reputation on sales price empirically verified by by Mink and Seifert (Group Decision and Negotiation International Conference, June 2006, pp. 253-255), and we derive the resulting Hamilton-Jacobi-Bellman (HJB) differential equation. The solution of this HJB equation relates optimal wealth level to a seller's reputation. We formulate both a full model, as well as a reduced model with fewer parameters, both of which have the same qualitative description of optimal seller behavior. Coincidentally, this reduced model has a closed form analytical solution which we also construct. Although the techniques we use are standard, we believe that the optimal strategy presented both analytically and numerically has implications on the way reputational information can be used to predict the behavior of an individual seller in an online market.

Examining the Effects of Unhealthy Product Sponsors and CSR on Sport Sponsorship Authenticity and the Sporting Event

Past studies examining sponsorship have primarily focused on the sponsor and not the sporting event. The current study seeks to analyze how sponsorship associations are interpreted by consumers toward the event through the Elaboration Likelihood Advertising Model (ELAM). The purpose of this study is to: (1) examine consumers’ perceptions of authenticity and unauthenticity stemming from sport sponsor-event partnerships and the effects of each partnership on consumers’ elaboration, attitude, and emotion; and (2) assess the impact of consumer attitudes and emotions toward the sporting event on event-related behavioral intentions based on perceived authentic and unauthentic partnerships. Significant differences were found among healthy, unhealthy and CSR experiments for authenticity, elaboration, and attitude but not for emotion. In addition, emotion was positive and significantly related to event-related behavioral intentions for all three experiments, while attitude was positive and significantly related to event-related behavioral intentions for the healthy experiment only. Findings provide evidence that sponsorship associations affect consumer evaluations toward the event.

Dreams for Sale: Ideal Beauty in the Eyes of the Advertiser

Dreams for Sale: Ideal Beauty in the Eyes of the Advertiser

Advertising or Brokerage Model for Social Platforms With a Commerce Feature

This study analyzes the business model decision of social platforms with a commerce feature. In practice, social platforms can adopt either an advertising model or a brokerage model. We develop a game-theoretic model to recommend the better business model and investigate the effect of social factors on strategy choice. We find that several factors, including the network effects between advertisers and consumers, the basic value of the commerce feature, and the social value, affect the business model decision. Specifically, when the ratio between the network effects of advertisers and consumers is large enough, meanwhile the commerce feature’s basic value and the social value are both at an intermediate level, the advertising model is optimal. Otherwise, the brokerage model is optimal. Interestingly, when the intrinsic value of products is adequately large, the social platform’s profit decreases with the commerce feature’s basic value. Finally, given an increase in the commerce feature’s basic value, when the intrinsic value of the products is in different ranges, the profit and the social platform decision may show different trends.

A dynamic advertising model in a vaccination campaign

Vaccines save thousands of lives every year, but many people remain unvaccinated because serious adverse neurological disorders are wrongly attributed to vaccination. The “urban myth” of a relevant vaccine-associated risk is sustained by anti-vaccination groups and it is spread by word-of-mouth communication. We face the problem of increasing the vaccination coverage using an approach which draws some elements from the theory of dynamic advertising models. We propose a dynamic model for the evolution of the number of unvaccinated people and assume that a policy-maker can control this dynamics through advertising. From a mathematical point of view, we state and analyze an optimal control problem with a pure state constraint. We find the unique optimal solution, which minimizes a cost functional, but may fail to be satisfactory from the different viewpoint of moving towards eradication of the disease. Our analysis suggests that we modify the problem statement in order to consider explicitly the goal of reducing the number of unvaccinated people, to a level which guarantees the herd immunity. Hence we introduce an upper bound to the final number of unvaccinated people. From the solutions to the two problems we obtain some prescriptions for the policy-maker.

Simulation of psychosomatic processes in advertising

The features of advertising psychology are investigated and the mechanism of its influence on consumer behavior is simulated in this paper. The basic models of perception of advertising information are considered and supplemented. Advertising has social, cultural, psychological impact on society, as it does not act as a manipulator of public consciousness, but contributes to the formation of relevant, aimed at self-development needs. It gives people knowledge, new experience, enriches their lives. Socio-psychological methods are widely used in advertising making it possible from a qualitative level to choose consumer characteristics of goods, to create the idea about this product consumers. While working on the advertisement production, it is necessary to take into account national trends in psychological theory: perception, memory, thinking, speech. This approach contributes to the creation of advertising product related to the desired image, expressing the right thoughts and is available to the audience for which it is created. In modern society, advertising technologies are widely used for the solution of various problems. We can speak a lot about the advertising psychology, as it directly participates in the formation of psychological attitudes, motivations, images. In order to investigated the effect of advertising message, the psychological mechanisms of the perception process are simulated. This includes the following components: stimulus, attention, interpretation and cognition. Psychological aspects of the process of advertising appeal perception explain how advertising informs and convinces. If we draw a parallel between the goal of the advertiser and the goal of the consumer, then using psychological approach, we get a conformity that takes into account advertising models. Advertising should be based on various advertising models that take into account consumer psychology, because the result achieved by advertising depends directly on the degree of psychological effectiveness of its impact, as the creation of advertising products should contribute to the harmonious development of society, national culture, education of future generations on own spiritual and cultural values, to form the priorities of their own state. In addition to simple advertising principles, there are a lot of more precise mechanisms of advertising effect, based on knowledge of psychology. Simulation of advertising communication processes makes it possible to demonstrate clearly the multi-stage nature of this process, which requires certain assessments for the determination of the effectiveness of advertising impact on consumer behavior. It is noted in this paper that simulation makes it possible to demonstrate clearly the multi-stage process of perception, to build a certain analogue that reflects the real situation and provide necessary information. Modern advertising tries to create conditions for the conscious perception of the buyer's advertising appeal and automatic purchase, ensuring sustainable buying process. All these processes of advertising perception and understanding are processes caused by certain psychological characteristics of advertising appeal consumers, i.e. those people for whom this advertising is intended. Definitely the knowledge of these psychological characteristics and the laws governing them should be the basis for advertising.

Ways to improve the organizational and economic mechanisms of tourism development and the use of the aida model of advertising

The article considers ways to improve the organizational and economic mechanisms of tourism development and the use of the AIDA model of advertising. It explains the organizational and specific economic mechanisms used in the development of tourism. The author's recommendation is added to both directions. While the use of information and communication technologies is added to the organizational mechanism, the economic mechanism is recommended to use the AIDA model of advertising, which can be used to attract the world's population to tourism.

Application of optimal control to the dynamic advertising decisions for supply chain with multiple delays

This paper is concerned with application problem of optimal control to a class of dynamic advertising models with multiple delays. Here, a dynamic model with state and control delays is introduced to describe the impacts of advertising delayed and memory effects on the evolution of brand goodwill. In the decentralized and centralized systems, the optimal advertising strategies of supply chain members are presented by utilizing the nonzero-sum differential game governed by differential equation with multiple delays in state and control variables. Special effort is made to analyse the geometrical shapes of advertising strategy and provide the optimal decision structure of supply chain system. Furthermore, nonzero-sum stochastic differential game is applied to explore the dynamic advertising decision problems of supply chain system with the multiple delays and stochastic cases. Finally, numerical examples are exploited to illustrate the effectiveness of the proposed results.

The effects of loss aversion on deceptive advertising policies

We extend the deceptive advertising model of Piccolo et al. (RAND J Econ 46(3):611–624, 2015) to a framework in which consumers may be loss averse. There are two sellers, competing on prices and offering experience goods with some differences in quality. Prospective customers may be harmed by deceptive advertising: a marketing practice that can induce them to make bad purchases. We show that although deceptive advertising occurs depending on the degree of consumers’ loss aversion, this behavioral bias does not reflect on firms’ prices. Nevertheless, the presence of loss-averse consumers crucially changes the optimal deterrence rule that a Public Authority should adopt against false claims and misleading advertising. Unlike Piccolo et al. (2015), in this more general model, strong enforcements may improve the buyer welfare according to the degree of loss aversion.

Behavioural advertising in the public transit network

Public transit networks play a significant role for urban advertisers because a considerable number of residents in urban areas use public transport for their transportation needs. Automated Fare Collection (AFC) systems provide advertisers with valuable records (smart card data) of the boarding and alighting transactions of passengers in the public transit network. While the demographic attributes of passengers are missed by most AFC systems around the world, the systems can still help to reconstruct the activities and trips of passengers. The availability of smart card data has provided a unique opportunity to create detailed models of passengers' travel behaviour. Hence, it is now possible to develop behavioural advertising techniques in the public transit network based on ongoing activities of passengers. Behavioural advertising in the public transit network considers not only location and time of trips, but also duration and type of passengers' activities. This paper proposes and compares two behavioural advertising models based on the smart card data attributes. The first model, a trip-based one, targets trips of passengers, which means it indicates the maximum number of trips on which an advertisement should be viewed, according to the purpose of each trip. The second model, a passenger-based one, targets passengers by maximizing the number of passengers who will view an advertisement relevant to their trip. Both models are formulated as linear programming models. Both models are run on a case study basis to explicitly present the outcomes of the models and the differences between them. Outcomes of each model determine a set of prime time and locations for advertisements in the public transit network. While the trip-based model targets more relevant trips with simpler computations, the passenger-based model displays advertisements to a greater number of passengers, with more complex computations.

How Datafication Drives Legacy Newspapers to Change Their Advertising Model for Business Survival

Technological advances have introduced changes in digital media business and funding models. Traditional “legacy” newspapers are reacting to the superior business performance of digital intermediaries such as Google and Facebook, which capture a big part of total digital advertising revenues. This work describes the change of focus of the Unidad Editorial, publisher of a set of leading digital newspapers in Spain, including elmundo.es. The company ceased perceiving other digital newspapers as its competitor and tried to learn from the advertising revenue models of major players in the digital arena. This study argues that the management of big data is deeply transforming legacy newspapers' advertising regime. Their advertising model is increasingly based on more sophisticated segmentation tools and programmatic advertising techniques. It finds that a strategy to attract revenue based on learning from competitive models of big platforms is efficient and logical. Hence, the ability to market the value of individual users in real-time is a key factor in the success of this model.

Coordination through cooperative advertising in a two-period consumer electronics supply chain

Firms in the consumer electronics industry frequently launch new styles of their products, which leads to a “two-period” phenomenon in their product sales. Only a few published articles have considered two-period models in cooperative advertising. This paper investigates co-op advertising strategies in a two-period supply chain consisting of a single manufacturer and a single retailer. Utilizing game theory, we consider two different scenarios: a decentralized scenario with a cooperative advertising program and an integrated scenario. Aside from these scenarios, we propose a supply chain contract to coordinate this supply chain system. This paper has the following conclusions: (i) the manufacturer usually does not provide the same advertising subsidy strategy for the two generation products in the same period; (ii) the manufacturer may provide a low subsidy rate to the retailer if the advertising long-term effect is strong; and (iii) we demonstrate that the two-way subsidy contract can achieve a perfect supply chain coordination if a transfer payment exists.

A Study on a Teaching and Learning Model of Korean Language and Culture Using Advertising for International Students

본 연구는 유학생 대상 교양 교과목에 적용할 수 있는 동영상 광고 활용 한국언어문화 교수 · 학습 모형을 개발하는 데 그 목적이 있다. 이를 위해 한국 언어문화 교육 제재로서 동영상 광고가 갖는 교육적 의의를 검토해 보고 모형을 개발하여 학부 유학생 대상의 교양 교과목에서 실제 수업을 실시하였다. 교수 · 학습 모형은 준비 단계, 창조 단계, 심화 단계로 구성하였으며 준비 단계는 ‘배경지식 활성화, 언어적 준비 학습’, 창조 단계는 ‘스토리 만들기, 발표하기’, 심화 단계는 ‘문화 비교하기, 통합적 생산’을 주요 학습 활동으로 배치하였다. 이와 같은 모형으로 유학생 대상의 교양 교육 과목에서 수차례 수업을 진행하였다. 이 중 가족 문화를 주제로 한 수업 사례를 살펴본 결과 학생들은 광고의 주요 장면들을 논리적으로 연결하여 스토리를 만들어 나가는 과정에서 서로의 사고방식과 문화 차이를 확인할 수 있었으며 심화 단계에서 자국 문화의 시각으로 한국의 현재 문화를 이해하면서 현재의 가치 문화와 행동 양식에 대해 비판적으로 사고하는 모습을 보였다. 본고는 학생들의 반응과 산출물을 질적으로 살펴봄으로써 동영상 광고를 활용한 언어문화 교육이 유학생 대상의 교양 교육에 긍정적으로 적용될 수 있음을 확인하였다.The purpose of this study was to develop a teaching and learning model of video advertising for Korean language and culture education for international students. To explore the topic, we examined the educational significance of video advertising as a sanction of Korean culture education and developed a teaching and learning model using video advertising after which we implemented the plan in actual classes in the undergraduate curriculum for international students. The teaching and learning model using video advertising comprised three stage: preparation, creation, and intensification. The main activities in the preparation stage were “activation of background knowledge” and “linguistic preparation learning” ; the activities in the “creation stage” were “creating stories” and “presentation”; those in the intensification stage were “cultural comparison” and “integrated production”. The main learning activities in the preparation stage was “activation of background knowledge” and “linguistic preparation learning” and those for “learning” in the in- depth phase were “cultural comparison” and “integrated production”. Several classes were held in liberal arts courses for international students using this model. After examining the case study under the theme of family culture, students were able to identify the way of thinking and cultural differences in the process of creating stories by connecting the main scenes of advertising logically. Students were able to successfully criticize the value and behavior of the contemporary Korean culture by applying the perspective of their own culture background. This study confirms that language and culture education using video advertising can be positively applied to liberal arts education for international students by looking at students’ responses and outputs in a qualitative way.