|
|
|
| Research on Two-Stage Dynamic Online Advertising under Product Harm Crisis |
| HE Xiang，LI Li，YANG Wensheng，HU Jiao |
| 1. Nanjing University of Posts and Telecommunications, Nanjing, China；2. Nanjing University of Science and Technology, Nanjing, China |
|
|
|
|
Abstract Based on the Nerlove-Arrow model, this study constructs a two-stage dynamic advertising model under product harm crisis. We then derive the optimal advertising strategies for enterprises in different decision-making modes respectively and assess the effects of outbreak likelihood and damage rate. The results show that: when the company optimizes the local profit, if the probability of a product injury crisis entering the outbreak period is small, the advertising level in incubation period should increase with the outbreak likelihood increases. When the company optimizes the overall profit, the company’s advertising levels on two platforms in incubation period and outbreak period are different. Besides, compared with different stages, when the company optimizes the local profit, the advertising level in the outbreak period is higher than that in the incubation period; when the company optimizes the overall profit, the results will vary with different platforms.
|
|
Received: 25 April 2022
|
|
|
|
|
|
|
