The pervasive adoption of mobile devices and proximity technologies enables firms to trace consumers’ trajectories and locations. This connects firms’ marketing and operations strategies more tightly with consumer mobility. In this paper, we propose a novel analytical model to examine the economic effects of consumer mobility on pricing and advertising strategies by incorporating consumers’ Lévy-walking behavior into advertising economics models. We ascertain the convergent effect of consumer mobility, i.e., consumers’ convergence to a firm leads to higher product price and advertising level. Meanwhile, it improves social welfare by increasing firm profit and consumer surplus. More interestingly, we find that consumers’ average movement distance (AMD) has opposing influences in pricing and advertising strategies. Specifically, longer AMD strengthens the convergent effect on advertising strategy but weakens that on pricing strategy. Finally, we also conduct a numerical analysis to uncover the impacts of the presence of proximity technologies on advertising outcomes. The results of this paper provide advisable guidance to firms on how to craft and adjust pricing and advertising strategies in accordance to consumer mobility. Moreover, the results present insights on welfare implications of informative advertising from the perspective of consumer mobility.

中文翻译：

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Lévy-Walking消费者定价和广告策略的理论分析

移动设备和邻近技术的普遍采用使公司能够追踪消费者的轨迹和位置。这将公司的营销和运营战略与消费者流动性更紧密地联系起来。在本文中，我们提出了一种新颖的分析模型，通过将消费者的 Lévy-walking 行为纳入广告经济学模型，来检验消费者流动性对定价和广告策略的经济影响。我们确定了消费者流动性的收敛效应，即消费者对企业的收敛导致更高的产品价格和广告水平。同时，它通过增加企业利润和消费者剩余来改善社会福利。更有趣的是，我们发现消费者的平均移动距离 (AMD) 在定价和广告策略方面具有相反的影响。具体来说，AMD 加强了对广告策略的收敛效应，但削弱了对定价策略的收敛效应。最后，我们还进行了数值分析，以揭示邻近技术的存在对广告结果的影响。本文的结果为公司如何根据消费者的流动性制定和调整定价和广告策略提供了可取的指导。此外，结果从消费者流动性的角度对信息性广告的福利影响提出了见解。本文的结果为公司如何根据消费者的流动性制定和调整定价和广告策略提供了可取的指导。此外，结果从消费者流动性的角度对信息性广告的福利影响提出了见解。本文的结果为公司如何根据消费者的流动性制定和调整定价和广告策略提供了可取的指导。此外，结果从消费者流动性的角度对信息性广告的福利影响提出了见解。