Dake Qian
Jiaxing University, School of Business, Jiaxing, China
Hailin Su
Jiaxing University, School of Business, Jiaxing, China
ABSTRACT
Online group-buying is a new kind of online sales mechanism which is dominant posted pricing under intersecting demand regimes. This manucript base on the assumption of the intersecting demand regimes to build a model to analyze the relationship between advertising investment and pricing and discuss the optimal joint decision-making of advertising investment and price. We derive the sellers optimal strategy under three decision-making paths and compare the sellers revenue with those that obtain under the more conventional posted-price mechanism. Our results show that when the demand for advertisement is unrelated the demand for prices, the sellers revenue from online group-buying mechanism is strictly outperform the revenue from posted pricing.
PDF References Citation
Received: August 31, 2013;
Accepted: November 08, 2013;
Published: November 13, 2013
How to cite this article
Dake Qian and Hailin Su, 2013. Joint Decision of Pricing and Advertising Investment for Online Group-Buying Under Intersecting Demand Regimes. Journal of Applied Sciences, 13: 4949-4954.
DOI: 10.3923/jas.2013.4949.4954
URL: https://scialert.net/abstract/?doi=jas.2013.4949.4954
DOI: 10.3923/jas.2013.4949.4954
URL: https://scialert.net/abstract/?doi=jas.2013.4949.4954
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