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1 – 10 of over 11000Abstract
Purpose
There are two major strategies for short video advertising which are KOL (key opinion leader) endorsement and in-feed advertising. The authors aim to research the effectiveness of these two strategies for heterogeneous sellers.
Design/methodology/approach
The study employed a data set of users from Douyin. Using an endogenous treatment model, the study empirically examines the two strategies' effectiveness in attracting product traffic for online retailors at a short video app Douyin (TikTok).
Findings
The results show that the performance of in-feed advertising is higher when the seller's product is of lower price and when the seller has smaller cumulative video exposure. In addition, KOL endorsement is effective regardless of the product price, but performs better when the seller has larger cumulative video exposure.
Originality/value
To the best of the authors’ knowledge, this study is one of the first to explore the interaction effects of two major advertising strategies, KOL endorsement and in-feed advertising on short video platforms. The findings provide important theoretical contributions and practical implications.
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Channel coordination has become an essential part of researching hotel supply chain management practices. This paper develops an improved channel coordination approach to…
Abstract
Purpose
Channel coordination has become an essential part of researching hotel supply chain management practices. This paper develops an improved channel coordination approach to coordinate the profit distribution between hotels and online travel agencies (OTAs) achieved through an introduction of advertising fees. This direction further improves the decentralization of cooperation and achieves Pareto improvement to achieve mutual profitability.
Design/methodology/approach
The methodology used in this study involves Stackelberg game theory employed for the decision-making and analysis of both the hotel and OTA. The OTA, acting as the leader, offers a hotel a contract specifying the commission rate that the hotel will pay to the respective OTA. The hotel, acting as a follower, sets a self-interested room rate as a given response. A deterministic, price-sensitive linear demand function is utilized to derive possible analytical solutions once centralized, noncooperative decentralization and cooperative decentralized channel occurs.
Findings
Results show that a new channel coordination approach is possible, namely via advertising fees. Prior to channel coordination, the OTA tends to set a higher commission rate, and the hotel sets a higher room rate in response under noncooperative decentralization. As such, this results in a lower channel-wide profit for all. One way to reduce channel-wide profit loss is to use a method of cooperative decentralization, which can, and will result in optimal profit as centralization takes place. However, the lack of incentives makes cooperative decentralization unfeasible. Further improvement is possible by using advertising fees based on a cooperative decentralization agreement, which can reach Pareto improvement.
Practical implications
This paper helps the OTA industry and hotel owners cooperate by way of smoother coordination. This study provides practitioners with two important practical implications. The first one is that the coordination between the hotel industry and OTA through cooperative decentralization allows for the achievement of higher profitability than that of noncooperative decentralization. The second one is that this paper solves the outstanding problem of insufficient incentives characteristic of cooperative decentralization by means of an advertising fee as a new supply chain coordination approach.
Originality/value
This paper offers both the problem and solution regarding the lack of incentives that hamper cooperative decentralization without the use of advertising fees. This paper is unique in that it derives analytical solutions regarding commissions levied in a typical hotel supply chain under noncooperative decentralization.
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Kristen L. Sussman, Laura F. Bright and Gary B. Wilcox
The digital environment afforded by social networks has created an opportunity to understand more clearly the impact of social media native advertising on advertising processing…
Abstract
Purpose
The digital environment afforded by social networks has created an opportunity to understand more clearly the impact of social media native advertising on advertising processing outcomes. Thus, the current study integrates native advertising with engagement literature to compare engagement outcomes between feed and banner placements before analyzing engagement outcomes of sponsored social media posts by advertising objective. This work aims to contribute to advertising effectiveness literature arguing for the importance of engagement as a measure of effectiveness.
Design/methodology/approach
Facebook advertising data were collected from a convenience sample of 10 Facebook advertisers that accounted for roughly $414,000 in advertising spend. Panel data, which are also called longitudinal or cross-sectional time-series data, used 26 months of data from the 10 advertisers to measure relationships between native advertising exposure and digital consumer engagement with advertising by advertising objectives of brand awareness, link clicks, conversions, post-engagement and video views.
Findings
Exposure to native advertising was a strong predictor of advertising processing and consumption using the three variables of interest: clicks, comments and shares. Ads reaching consumers while natively consuming content in their feed resulted in statistically significant improvements in impressions and clicks when compared to banner ads. Exposure to native ads was significantly related to all engagement outcomes of interest, except for advertisers who chose post-engagement as their advertising objective.
Practical implications
The results suggest that for advertisers seeking clicks, post-engagement objectives should likely be avoided. For this group, impressions were not related to link clicks but were related to comments and shares. Native advertising placements in the feed, however, are generally more effective than banner ads on Facebook for advertisers seeking engagement.
Research limitations/implications
This research is one of few studies to use longitudinal advertising data to explore engagement effects using real-world data collected from a diverse set of Facebook advertisers over a 26-month period. This study shows that interactive marketers using a social media feed to reach consumers can expect positive outcomes in advertising consumption, affective and cognitive processing and advocacy, but those outcomes may vary by advertising objective.
Originality/value
Given the uniqueness of the data set, the findings contribute to native advertising literature and to the literature on digital consumer engagement with advertising in social media. The study also provides empirical support for the efficacy of native advertising.
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Evert Van den Broeck, Karolien Poels and Michel Walrave
This paper aims to investigate the role of five highly relevant advertiser- (i.e. personalization and ad placement) and consumer-controlled (i.e. privacy concerns, perceived…
Abstract
Purpose
This paper aims to investigate the role of five highly relevant advertiser- (i.e. personalization and ad placement) and consumer-controlled (i.e. privacy concerns, perceived relevance and Facebook motives) factors in the evaluation and perceived outcomes of personalized Facebook advertising as well as how these factors interrelate.
Design/methodology/approach
Twenty-eight semi-structured interviews, in which elicitation techniques were used, were carried out among 25- to 55-year-old Facebook users.
Findings
The findings point to a complex tradeoff between the risks and benefits of personalized Facebook advertising, in which perceived relevance and Facebook use motives play a vital role.
Research limitations/implications
This study focused on the general Facebook advertising experience, yet the elicitation techniques were applied only on the desktop website. Future research should look further into mobile advertising formats.
Practical implications
Personalization and retargeting algorithms could be improved and ads should be designed with the customers’ interests in mind to improve their effectiveness and reduce privacy concerns.
Originality/value
Social media advertising innovates at a high pace. Yet, the literature shows an urgent need for research into which ad formats and characteristics appeal to users and why (or why not). Qualitative studies into the determinants of advertising outcomes are scarce but highly needed because they can uncover complex interactions between factors and thus provide a deeper understanding.
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The purpose of this study is to examine the kinds of ad appeals and brand types that contribute to perceived ad–media congruence on Instagram and how such congruence influences…
Abstract
Purpose
The purpose of this study is to examine the kinds of ad appeals and brand types that contribute to perceived ad–media congruence on Instagram and how such congruence influences consumers’ engagement intentions via the interaction of self-related congruence constructs. Additionally, ad intrusiveness was studied as a mediator of the relationship between ad–media congruence and consumers’ behavioral engagement intention.
Design/methodology/approach
An online 2 (Ad appeal: hedonic vs utilitarian) × 2 (Brand type: hedonic vs utilitarian) between-subject experiment was conducted with four versions of mock-up Instagram in-feed native ads.
Findings
Results showed that hedonic advertising appeals contributed to ad–media congruence on Instagram, which yielded a lower level of ad intrusiveness and further resulted in higher consumer behavioral engagement intentions. The brand type did not significantly influence participants’ perceptions of ad–media congruence. Moreover, the findings indicate individuals’ brand-self congruence and ad-self congruence were significant moderators in interactions with ad–media congruence in influencing consumers’ behavioral engagement intentions.
Practical implications
Both brand managers and social media providers can leverage this study’s findings to improve ad effectiveness and consumer experiences in their respective social media landscapes. Specifically, knowing what kind of ad is more congruent and less intrusive, as well as how to better tailor targeting strategies in digital media spaces by building higher ad self- and brand self-congruence, can help them achieve persuasive effects when complying with the Federal Trade Commission disclosure guideline.
Originality/value
The current study advances extant literature on native advertising by examining the core characteristic of ad–media congruence and its relation to the key metric of social media marketing success – consumer engagement intentions. The findings also extend the congruence theory by examining the interaction effect of media- and self-related congruence constructs.
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Buqing Ma, Xiaoyan Xu, Yanhong Sun and Yiwen Bian
Consumers are increasingly using search-based advertising in e-Business platforms to seek their desirable products. Platforms will choose a centralized advertising mechanism (CAM…
Abstract
Purpose
Consumers are increasingly using search-based advertising in e-Business platforms to seek their desirable products. Platforms will choose a centralized advertising mechanism (CAM) or decentralized advertising mechanism (DAM) to offer a search advertising service to lower consumer search cost, as represented by using search time length. It is important for the platform to decide how to choose advertising mechanisms, and how to determine the optimal advertising price and search time length. To address these issues, this study aims to develop a theoretical approach under each mechanism to examine the platform’s optimal search-based advertising strategy by considering search cost.
Design/methodology/approach
In this study, two models are developed to examine the optimal search-based advertising strategy by considering consumer search cost (i.e. search time length). By comparing the platform’s profits under two models, the optimal advertising strategy, search time length and price are explored.
Findings
It is found that when the seller’s reserve benefit is sufficiently large, the platform benefits from choosing the DAM; otherwise, the CAM is a better choice. The advertising service is usually offered with a shorter search time length accompanied by a higher charge, and a longer search time length accompanied by a lower charge. Specifically, when the seller’s reserve benefit is substantially high, a DAM that benefits both the platform and seller is a better choice. This can explain why many platforms offer advertising services with a DAM.
Originality/value
This paper is the first theoretical study on addressing the search-based advertising strategy, especially the choice of advertising mechanisms, in the online advertising context. It is also the first piece of analytical research that considers the effect of consumer search cost on product demand, and then examines the optimal advertising price and search cost (i.e. search time length) for online platforms.
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Wenjia Han, Ozgur Ozdemir and Shivam Agarwal
Built upon customer engagement marketing theory and uses and gratification theory, this study examines the link between individual social media marketing (SMM) performance…
Abstract
Purpose
Built upon customer engagement marketing theory and uses and gratification theory, this study examines the link between individual social media marketing (SMM) performance indicators and restaurant sales performance at the firm level. Moreover, the study investigates the moderating effect of advertising expenditure on this proposed relationship.
Design/methodology/approach
Random effect regression models were developed in Stata to examine the associations between SMM performance indicators, advertising expenditure, and restaurant firm revenue. Twelve years of SMM data from brands' Facebook pages were collected with a web scraper built in Python. Natural language processing was used to analyze the sentiment of user-generated content (UGC).
Findings
The results suggest that restaurant annual sales revenue increases as the volume of brand posts, “like”s, “share”s and positive comments on restaurants' Facebook pages increase. However, the total number of comments and the number of negative comments show non-significant associations with revenue. Firm advertising expenditure negatively moderates the relationships between sales revenue and the number of “like”s, “share”s, total comments and positive comments.
Practical implications
Restaurants benefit from making frequent posts on SNSs. Promotions that motivate online users to “like”, share, and comment on brand posts should be implemented. Firms with limited advertising budgets are encouraged to actively create buzz on SNSs due to evidenced stronger effects of UGC on sales performance than large advertisers.
Originality/value
This research bridges the gap by studying the effects of individual SMM performance indicators on restaurant financial outcomes. The findings support the effectiveness of SMM; and, for the first time, demonstrate that SMM could generate a more profound impact for firms with low advertising budgets.
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Introduction The importance of effective recruitment can hardly be over‐emphasised. Errors can be offset, but at a cost, either by further recruitment, or by extra training and…
Abstract
Introduction The importance of effective recruitment can hardly be over‐emphasised. Errors can be offset, but at a cost, either by further recruitment, or by extra training and development. However, not only must recruitment be effective—it must also be efficient. This entails taking costs into account, although these are often difficult to control because budgets are notoriously difficult to set. However, given the amount of resources involved, it is surprising that not more attention has been paid by writers to the cost‐effectiveness of the process.
Yunus Kathawala, Khaled Abdou and Catharina von Franck
As competition abounds, the efficient organization of a company's supply chain is a vital success factor for companies in today's business world. In recent years, electronic hubs…
Abstract
As competition abounds, the efficient organization of a company's supply chain is a vital success factor for companies in today's business world. In recent years, electronic hubs have received great attention, providing buyers and suppliers alike with a means of structuring and streamlining their supply chains in order to create maximum efficiency. Concerning the future of the e‐hub environment, online marketplaces are expected to move rapidly toward becoming full service providers, letting e‐commerce swallow the entire supply chain. Moreover, distinctions between public and private hubs will likely blur, while only the strongest electronic hubs with the most profitable operations strategies will be able to succeed in the long run. Conducts analysis to the e‐hubs supply chain, followed by a comparative analysis of the current situation supported by examples of successful e‐hubs. As a consequence, provides a benchmarking basis for organizations wishing to incorporate the know‐how and experience of these successful hubs into their own business. Finally, a forecast to future trends in the e‐hub market space is conducted along with recommendations.
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Art Thomas, Jenny Darroch and Wendy Galvin
Steeped in tradition, the New Zealand Law Society began removing restrictions on marketing law firms about 12 years ago, with virtually all restrictions dismantled by 1994. As a…
Abstract
Steeped in tradition, the New Zealand Law Society began removing restrictions on marketing law firms about 12 years ago, with virtually all restrictions dismantled by 1994. As a result, legal firms are now free to use a variety of marketing tools, although some are more diligent and inventive than others. The purpose of the study was to explore the forms of marketing communications being used by legal practices and to identify the type of firm more likely to be communicating with existing and non clients. The results indicate that most firms focus primarily on technical quality (the job, the work required), rather than services quality (the experience, the feeling).
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