Market Model Research Articles

Marketing communication models

The purpose of the article is a retrospective review of marketing communication models developed and used in practice. The article examines the models of marketing communications proposed by foreign authors and their evolution. It has been established that the development of these models began after the Second World War in 1948 by Lasswell. Subsequent authors improved this model or proposed their own original approaches. The advantages and disadvantages of the models under consideration are indicated.

The role of immigration in a deep recession

This paper studies the impact of pre-Great Recession immigrant inflows on the labour market during a recession. It develops a random search model of the labour market featuring vacancy persistence, endogenous return migration, and wage rigidity. Consistent with the Spanish data, some immigrants in the model leave the country during the recession, freeing up jobs for natives. Yet, differences in match-quality draws between immigrants and natives also impact firms’ job creation decisions. The return-migration channel positively affects natives, while job creation effects are negative in the calibrated Spanish economy. I find that immigrants mitigate the impact of the recession and enhance natives’ welfare. During the recession, the native unemployment rate would have been 2 percentage points higher in the absence of the pre-crisis immigration boom. Return migration plays a key role, with short- and medium-run impacts on the native unemployment rate 6 times larger than all other channels combined.

Strategic behavior in TSO-DSO coordinated flexibility markets: A Nash equilibrium and efficiency analysis

This paper investigates the way in which the design of a TSO-DSO coordinated flexibility market can enable strategic behavior by flexibility service providers (FSPs). Multiple flexibility market models are considered for the procurement of flexibility services by transmission and distribution system operators, namely: a common (joint) market, a fragmented market, and a sequential multi-level market. Considering these market models, three non-cooperative games are introduced to investigate the strategic bidding and interaction between FSPs therein. Detailed conclusions are then drawn on the existence and uniqueness of Nash Equilibria (NEs) in the developed games, including derivations of closed-form expressions of the resulting NEs and corresponding price-of-anarchy, capturing the FSPs’ strategic bidding impact on the markets’ efficiency. The analysis considers – first in a duopoly setting, then with multiple players – three different use cases representing when: (1) a sufficient flexible capacity exists (sufficient flexibility offered from the FSPs and adequate interconnection/grid capacity between systems); (2) participants have a scarce flexibility capacity; and (3) a restrictive interface capacity exists between the systems. A case study considering an interconnected transmission–distribution system and multiple FSPs corroborates the analytical findings. The obtained results show that market participants have incentives to set bid prices greater than their marginal costs, thus decreasing the markets’ efficiency. This aspect is shown to be more pronounced when the available flexible capacity is limited, a restrictive line limit is present, or when the market is fragmented, thus supporting the need for additional network investments and the creation of joint flexibility market formats.

Circular battery production in the EU: Insights from integrating life cycle assessment into system dynamics modeling on recycled content and environmental impacts

AbstractThe European Union (EU) Battery Regulation aims to establish a circular battery production and sets minimum battery material recycled targets for new batteries from post‐production and post‐consumer waste batteries. However, it is uncertain whether these targets can be met due to dynamic market developments and if their compliance results in environmental benefits. Therefore, this study examines the circular battery production in the EU and its impact on material flows and the environment from a market perspective. We combined a system dynamic market model with process models for battery production and recycling, using prospective life cycle assessment. According to our analysis, the projected amount of post‐consumer waste alone may not meet the specified levels of recycled materials due to long battery lifetimes. Thereby, the targets for cobalt are particularly ambitious, with a gap of between 9.8 and 14.6 percentage points for most scenarios. In the case of reduced battery lifetimes, the achievable recycled content across all materials increases by more than 75% in 2032 and by more than 85% in 2037. The avoidance of post‐production waste leads to 9% lower greenhouse gas (GHG) emissions compared to recycling with 100% recycling efficiency. Thus, attributable amounts of post‐production waste and unfavorable prolonged use of batteries create misguided incentives to meet legal targets. Additionally, the delay between production and recycling limits the potential for circular production as this depends significantly on market conditions. Our study highlights, that besides recycling, the industry should especially advance production processes including upstream material extraction and refinement to reduce environmental impacts.

Research on the Impact of Social Media Live-Streaming on Consumer Purchasing Behavior and Its Coping Strategies

Due to the rapid development of network technology and the popularity of live-streaming, more and more businesses and individuals are using live-streaming to promote their products, giving rise to a new marketing model of social media live-streaming. Based on the social media live-streaming market, businesses or enterprises focus on tapping into new consumer demand, and social media live-streaming marketing has gradually expanded into various fields. Based on the SOR theory, this paper discusses how to improve the coping strategies of consumer purchasing behavior through social media live-streaming by analyzing the representative factors affecting consumer purchasing behavior such as anchors, brands, and live-streaming content in social media live-streaming. The results of this study will contribute to a better understanding of the relationship between social media live-streaming marketing models and consumer purchasing behavior and will help to reveal the potentials and limitations of social media live-streaming, thus providing valuable ideas and scientific basis for social media live-streaming marketing strategies.

Analysis of Service Marketing Strategies in the Senior Study Travel Tour Market

Senior study travel, as an emerging form of tourism, combines the dual characteristics of educational learning and leisure travel. It not only meets the elderly’s desire for spiritual and cultural life and self-fulfillment but also promotes the construction of a healthy aging society. This study comprehensively uses methods such as literature analysis, interviews, and case studies to analyze the current status and existing problems of the senior study travel market. Based on the 7Ps service marketing model, it explores service marketing strategies for the senior study travel market, aiming to provide reference and guidance for related tourism enterprises to supply more attractive senior study travel services.

Service-informed marketing reform

PurposeThis paper aims to develop an alternative perspective on marketing informed by service scholarship to resolve marketing’s challenges as a discipline and practice.Design/methodology/approachThis paper is conceptual and builds on the ongoing debate regarding marketing’s challenges and on service research to develop a new alternative marketing perspective and model, which could contribute to reforming marketing.FindingsAn analysis of the current understanding of marketing showed that the discipline’s myopic focus on activities, which disregards what marketing is as a phenomenon, is the primary reason for the prevailing problems and failure to reform marketing. Based on research into service logic (SL), the paper demonstrates that a higher level view of service can be characterized as the provision of help to the users of goods and services to ensure that these goods and services deliver meaningful assistance in their lives and work. This suggests that the ultimate objective for marketing is to make firms meaningful to the users of their goods and services.Research limitations/implicationsTo the best of the author’s knowledge, since this paper is the first to conceptually develop a perspective on marketing and a corresponding model informed by service scholarship, more conceptual and empirical research is necessary. Developing the new meaningfulness-based perspective and model for marketing brings a new approach to the process of resolving marketing’s current troubled situation.Practical implicationsThe meaningfulness approach to marketing enables customer-centered marketing strategies to be implemented. Such strategies include both demand-stimulating and demand-satisfying programs.Originality/valueTo the best of the author’s knowledge, this paper is the first to examine marketing’s troubled situation from a service research and SL perspective.

Research on Energy Trading Mechanism Based on Individual Level Carbon Quota

High economic growth is accompanied by substantial consumption of fossil energy and significant negative externalities on the ecological environment. The global warming effect resulting from environmental pollution caused by energy has brought energy carbon emissions into the forefront of social attention. Establishing a carbon trading market is an essential measure to achieve the “double carbon” goal, with individual and household carbon emissions accounting for 70% of China’s total emissions. Constructing an individual-level carbon trading market will facilitate the efficient realization of this goal. However, addressing the challenge of handling vast amounts of data and network congestion in relation to frequent but small-scale individual carbon trading has become an urgent issue that needs to be resolved. In light of this, the present study designs a digital technology-based framework for the carbon market trading system and proposes an individual carbon asset price-based model for carbon market trading, aiming to establish a research framework for the carbon quota market. Furthermore, blockchain technology is employed as the underlying technology in the proposed carbon trading market model to cater to individual-level carbon trading services and achieve optimal matching between carbon quota suppliers, thereby enhancing profitability of the carbon trading platform. The numerical results obtained from the model demonstrate that in absence of government subsidy mechanisms, individual-level carbon trading can effectively reduce total consumer emissions. The present study successfully overcomes the carbon lock-in effect of consumer groups and achieves the generation and trading of individual carbon assets despite capital constraints. This study facilitates accumulation and trade of individual carbon resources, reduces overall consumer emissions, enhances environmental benefits at societal level, and provides a foundation for governmental decision-making.

Institutional model of commercial real estate market

The study considers institutions of the commercial real estate market with the aim to develop a descriptive institutional model. Institutional boundaries of the commercial real estate market are outlined. Time limits are determined by the equalization of supply and demand through the dynamics of rental rates. Geographical limits, despite the local character of the market, are determined by the participation of the largest developers. Commodity boundaries form the intended purpose of commercial real estate related to its use by lessees for business. This allows the interconnection of commercial real estate institutions to be considered from the perspective of value creation. By means of land relations, the initial conditions are determined by the institution of the state, which also establishes registration requirements. The developer connects the land supply with the rental market by developing a concept of the object, thus influencing related industries (developers, producers of construction materials). The institution of commercial real estate management ensures the interests of the developer. The composition of its participants is diverse, allowing the investor’s offer to be communicated to potential tenants as a value. The institute of accompanying participants of the commercial real estate market is mainly involved in information exchange between its other subjects; however, this institute is responsible for making the constituent links of the market sustainable. The lessee forms the final product using the value created by the developer (lessor) in the form of the intended purpose and individual properties of the object. Rental rates affect the profitability of commercial real estate, thereby determining the developer’s demand for capital. The results obtained can be used by both developers and researchers. The conclusion is made about the limited institutional role of the investor due to irrational capital raising and transferring these costs to the lessee. The reasons lie both in the strategies of most developers and in the desire to reduce risks through the preferred use of debt capital.

‘We’re not all into death and doom … it’s more an appreciation of the macabre.’ Exploring brand success at dark tourism festivals

ABSTRACT Festivals with dark and Gothic themes and their implications for local economies, cultural appropriation and consumer experience have attracted increased attention in recent years. Dark tourism festivals are popular with festival goers, economically and culturally valuable, and often represent important shoulder-season assets. However, the role of festival goers in the marketing mix is currently poorly understood. This paper focuses on the role festival goers play in experiential marketing at dark tourism festivals. This paper utilises a comparative case study approach, examining two examples of dark tourism festivals with a gothic and dark focus: the Whitby Goth Weekend (UK) and the Bram Stoker Festival (Ireland). The paper adopts an inductive approach, and qualitative methodology, drawing on semi-structured interviews’ primary data. Thematic analysis is used to analyse data. Interviewees (n = 30) include festival management, festival marketers and festival participants. Our findings propose a model for dark tourism festival marketing, positing that a co-created approach, with high levels of participant engagement, is required for brand success. This paper presents implications for the practical promotion of niche festivals, including practical tips for marketing, societal need/ attraction to ‘unusual’ festivals, economic impacts and creating a more resilient festival design.

Neural Networks and the Nonlinear Feynman–Kac Theorem Applied to Financial Options Pricing

The classic financial market model proposed by Black and Scholes allows solving, under a series of simplifying assumptions, the problem of valuing financial derivatives. However, these assumptions deviate from the reality of global markets, particularly assuming perfect liquidity. In this work, a financial market model is proposed in which the illiquidity of the risky asset is stochastic, described by a mean-reversion process. The dynamics of the asset price in this context are established alongside the valuation PDE for derivatives. Additionally, as an approximation method to the solution of this PDE, the implementation of the extension of the Feynman–Kac representation theorem to the nonlinear case using deep neural networks is proposed.

Comparing the New Media Marketing Models with the Traditional Marketing Models

Marketing has always been one of the most important keys to business success. With the development of society, market competition is becoming more and fiercer, and enterprises have deeper requirements for marketing. The traditional marketing model has been unable to satisfied all the demands of enterprises. The rapid development of new media in recent years has also given birth to a series of new marketing models. This paper mainly analyzes and compares two marketing models, the traditional marketing model and the new marketing model, and draws a conclusion that the new marketing model is more effective. This new marketing model is more helpful to help enterprises achieve the ideal sales target, and is also more effective for far-reaching development of companies' brands. This paper can help people clearly understand the differences between these two marketing models.

Research on the 4R Marketing Strategy of Chanel

Background: Chanel is a French luxury brand established in Paris in 1910, It has a variety of categories, all of them with a high level of craftsmanship. In the latest corporate rankings, Chanel ranks high among the worlds top 100 brands. Problem Definition: In this paper, considering Chanels high annual sales and loyal customer relationships, this paper studies how Chanel conducts marketing that balances brand interests and customer relationships. Result: To make the analysis clearer, I used the 4R marketing model. Research has shown that Chanel's high-end and fashionable product line, traditional and innovative brand concept, and meticulous service make its reputation and image highly attractive, better seize market opportunities, and give it a high position in the hearts of consumers, representing identity and wealth, thus making brand interests and customer relationships complement each other.

Modelling the Synergy of Digital Marketing and Advertising in Real Estate

Digital marketing in real estate companies is a prominent trend due to superior network infrastructure and rising smartphone usage in Malaysia. Digital marketing increased during the Coronavirus Disease (COVID-19) pandemic because it decreased health hazards and improved public reach. This study examines real estate agency digital marketing components and their performance. Data was acquired using self-administered questionnaire delivered to Klang Valley real estate agents and negotiators. Frequency and PLS-SEM were used to identify relevant factors. The results indicate that Customer Engagement (C) and Value and Cost (V) components significantly affected real estate agency marketing. In contrast, Segmentation (S) and Longevity (L) were insignificant. The study introduces a relationship model for real estate agency digital marketing in Malaysia, which will improve its utilisation.

The impact of economic instability on credit concessions: the case of the Covid-19 pandemic

Purpose: This research aims to analyze the impacts of the economic instability caused by Covid-19 on the volume of credit issuance in Brazil. Methodology: The research methodology employed time series regression models in the Brazilian market and was based on historical values of macroeconomic variables. The study period spans from February 2013 to April 2023, divided into pre-pandemic (02/2013-02/2020) and pandemic (03/2020-04/2023) periods. Results: It was observed that the impact of the Covid-19 pandemic on credit issuance volume was minor when controlling for other macroeconomic characteristics. There are indications that only the year 2020 exhibited more significant variations, with the average during the 2020 to 2023 period being not so different from the pre-pandemic period. Contributions of the Study: This study suggests that the crisis had only a temporary effect and that the economic measures taken during this period may have contributed to the recovery, indicating preparation for future pandemics that experts expect to occur.

Business Models on the Energy Market in the Era of a Low-Emission Economy

In the energy market, we observe a dynamic development of innovative business models that take into account various aspects related to the direction of zero-emission economic growth. Companies are intensifying their efforts in utilizing renewable energy sources, implementing significant photovoltaic projects, and advancing technologies related to wind and hydrodynamic energy. Within this trend, microgrids become a crucial element, enabling efficient management of local energy sources. Contemporary energy companies also focus on innovative digital technologies, harnessing the potential of the Internet of Things (IoT) and artificial intelligence (AI). These tools allow for precise monitoring and optimization of energy consumption, resulting in increased operational efficiency. The expansion of subscription-based energy services encompasses not only traditional energy deliveries but also new aspects, such as intelligent management of home energy installations or the provision of advisory services on energy conservation. This approach emphasizes the customer as a partner in sustainable energy usage. Hybrid energy models, integrating diverse energy sources, constitute a key element in the transformation of the sector. The combination of photovoltaic, wind, and traditional power plants allows for flexible adaptation to changing conditions and maintains stability in the energy supply. In the face of a changing energy landscape, companies consistently strive for sustainable practices, implementing strategies that not only reduce their carbon footprint but also contribute to improving efficiency, ecology, and the decentralization of the energy system. Adapting to these dynamic changes becomes not only a challenge but also an opportunity to create a more sustainable energy future. The objective of this research is to analyze key business models in the energy market and identify their impact on operational efficiency and market competitiveness. The main results indicate significant improvements in energy management and sustainability through the adoption of these models.

The effect of PV generation's hourly variations on Israel's solar investment

Limited by sunniness and conversion efficiency, one installed MW of photovoltaic (PV) capacity can only produce ωt MWh of electricity in daytime hour t, where ωt = positive fraction that we call PV's hourly effective capacity (HEC). Based on a sample of commercially operating PV plants in Israel, HEC rises throughout the 08:00–11:00 period, peaks in the 11:00–14:00 period and then declines in the 14:00–18:00 period. Further, HEC values in spring and summer exceed those in autumn and winter, thus motivating our research question: do HEC variations by hour and season adversely affect the plans for and assessment of PV investment in Israel? An affirmative answer would cause concerns regarding Israel's announced policy of relying on increasing market penetration of PV generation transitionally supported by merchant natural-gas-fired generation (NG) to achieve a low-carbon electricity future. Hence, we propose a two-stage model of Israel's forthcoming Cournot wholesale electricity market with independent power producers (IPPs) operating PV and NG power plants. By comparing the model's solutions under alternative HEC scenarios, we find that the level of detail in modelling the HEC variations by hour and season does not materially affect the optimal PV and NG investments, thus lending support to the use of relatively simple models with only two daily non-seasonal HEC values to assess Israel's announced policy of deep decarbonization. Our methodology is general and real-world relevant because it can be readily adapted for applications in other regions with ample sunshine and wholesale electricity market competition (e.g., California, Texas and Australia).

Distributional effects of immigration and imperfect labour markets

In canonical models, the labour share is orthogonal to immigration shocks in the long run, regardless of the impact of immigration on productivity. In contrast, this paper provides evidence that immigration increases labour productivity while reducing the labour share. We produce this evidence using data from Great Britain with a shift-share instrument that exploits European Union expansions and changes in immigration to other high-income countries. Our results are consistent with the predictions from imperfect labour market models, where immigrant and native workers are heterogeneous in skills, and the former have lower labour supply elasticities than the latter. A significant implication of our analysis is that immigration redistributes income from workers to employers.

화장품 브랜드 디자인 콜라보레이션이 소비자 구매의도에 미치는 영향 연구

In recent years, brand collaboration products have become increasingly popular among young consumers. Amid fierce competition in the cosmetics market, cooperation between brands has emerged as a novel marketing model. Companies introduce sentiment-driven collaboration products to enhance consumer brand preference and stimulate purchase intentions. This study aims to define the concept, purpose, and types of multilateral collaborations for cosmetics brands, drawing on previous studies, and analyze the factors influencing consumers' purchase intention. This study selected Innisfree’s design collaboration, which is gaining popularity in China, as the focal point. Awareness and preference for brand design collaborations were identified, and their effect on consumers' purchase intentions was analyzed. In addition, the study also exploited the mediating relationship by examining the correlation between the type of cosmetic brand design collaboration, brand preference, and consumer purchase intention. The results indicated that character collaboration, art collaboration, and brand collaboration all positively impacted consumers' purchase intentions in the context of cosmetics brand design collaboration.

Study on the Stability of Complex Networks in the Stock Markets of Key Industries in China.

Investigating the significant "roles" within financial complex networks and their stability is of great importance for preventing financial risks. On one hand, this paper initially constructs a complex network model of the stock market based on mutual information theory and threshold methods, combined with the closing price returns of stocks. It then analyzes the basic topological characteristics of this network and examines its stability under random and targeted attacks by varying the threshold values. On the other hand, using systemic risk entropy as a metric to quantify the stability of the stock market, this paper validates the impact of the COVID-19 pandemic as a widespread, unexpected event on network stability. The research results indicate that this complex network exhibits small-world characteristics but cannot be strictly classified as a scale-free network. In this network, key roles are played by the industrial sector, media and information services, pharmaceuticals and healthcare, transportation, and utilities. Upon reducing the threshold, the network's resilience to random attacks is correspondingly strengthened. Dynamically, from 2000 to 2022, systemic risk in significant industrial share markets significantly increased. From a static perspective, the period around 2019, affected by the COVID-19 pandemic, experienced the most drastic fluctuations. Compared to the year 2000, systemic risk entropy in 2022 increased nearly sixtyfold, further indicating an increasing instability within this complex network.