Optimal Advertising Strategy for a Stackelberg Framework Under an Advertising-Driven Demand

Advertising-driven demand is very common in practice.This paper considers pricing and advertising strategies issues in a two-echelon supply chain involving a manufacturer and a retailer.According to who undertakes the advertising expenditure,both the retailer-advertising case and the manufacturer-advertising case are analyzed under the Stackelberg framework.The crucial factor that affects the advertising strategy and the optimal profit for each participant is revealed.Furthermore,we compare profits of the two participants under different situations.It is demonstrated that both the manufacturer and the retailer gain more profits in the retailer-advertising case than those in the manufacturer-advertising case.In other words,the retailer has more incentive to advertise the product for the sake of maximizing its profit.Finally,a numerical illustration is presented to examine the change of the profit for each participant under different marginal demands and promotion degrees.

Value Assessment of Airport Billboards Based on Passenger Big Data

As an important element of the airport ecosystem,airport billboards are playing a crucial role in publicizing the city image and facilitating humanistic airport construction.At the same time,airport billboards have great commercial value and is a popular channel for enterprises to prompt their products and to build their brand image.Currently,most airports in China adopt a simple fixed pricing mechanism for airport billboards.Specifically,for any type of billboard,the advertising price is mainly determined by considering historical prices and the total passenger flow of the entire airport during a whole year.However,this seemingly crude pricing mechanism only considers macro-level data of passenger flow and fails in reflecting the real value of billboards in different locations effectively,since the value of a particular billboard depends not only on its media form,but also on the number of passengers flowing through and whether these passengers are the target customers of the advertising content.Based on big data on airport layout,flight information,and passenger attributes,this paper proposes a time-and location-based value assessment model for airport billboards.Using sample data collected from the Beijing Capital International Airport,the assessment model is adopted to evaluate the value of two real billboards in Terminal T3.Application of this model can reflect the difference in the value of airport billboards located in different spots during various periods.Furthermore,this model provides a solid foundation for airport executives to develop differentiated/dynamic pricing and flexible advertisement scheduling strategies,thereby improving the overall efficiency.