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Distinct role of targeting precision of Internet-based targeted advertising in duopolistic e-business firms’ heterogeneous consumers market
Electronic Commerce Research ( IF 3.462 ) Pub Date : 2019-11-13 , DOI: 10.1007/s10660-019-09388-x
Zhao Jiang , Wu Dan , Liu Jie

Advances in information technologies and e-commerce enable e-business firms to collect detailed consumers’ data and send Internet-based targeted advertising to their potential consumers accurately, thereby performing B2C sales. However, the perfect targeting for an e-business firm is always a challenge due to the asymmetric information between the firm and consumers. This essay starts by setting up a model with two horizontally differentiated firms competing in prices and targeted advertising at a variable targeting precision in an initially uninformed heterogeneous consumers market. The results indicate that both e-business firms should target only their advantage markets with optimal targeting precision. Otherwise, each e-business firm’s equilibrium profit might be lower or higher with Internet-based targeted advertising comparing to mass advertising, which depends on the effective choice of distinct targeting precision. Finally, the effective investment on the optimal targeting precision for e-business firms pursuing the maximum profit in the B2C sales model is generated.

中文翻译:

基于互联网的定向广告的定向精度在双寡头电子商务公司的异构消费者市场中的不同作用

信息技术和电子商务的进步使电子商务公司能够收集详细的消费者数据,并将基于Internet的定向广告准确地发送给其潜在消费者,从而实现B2C销售。但是,由于电子商务公司与消费者之间的信息不对称,因此针对电子商务公司的理想定位始终是一个挑战。本文首先建立了一个模型,该模型由两个水平差异化的公司竞争价格,并在最初不知情的异类消费者市场中以可变的定位精度定位广告。结果表明,两家电子商务公司都应仅以最佳定位精度瞄准其优势市场。除此以外,与大规模广告相比,基于互联网的定向广告对每个电子商务公司的均衡利润可能更低或更高,这取决于有效选择不同的定向精度。最后,针对在B2C销售模型中追求最大利润的电子商务公司,针对最佳定位精度产生了有效投资。
更新日期:2019-11-13
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