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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 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.

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.

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.

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.

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.

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.

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.

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.

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.

Considering the network externalities of online selling, this paper builds three different online direct selling models: manufacturer direct selling (MN model), network platform direct selling (NN model) and retailer direct selling (RN model). The optimal advertising and pricing decision and corporate profits under each selling model are investigated.

Combining the characteristics of online direct selling, this paper formulates direct selling models that are dominated by different companies as Stackelberg game models. Numerical analyses are carried out, along with the comparison of the equilibrium solutions for each model.

The authors' research shows that increasing network externalities is conducive to the development of enterprises. The network platform's profit is the lowest in the RN model and the highest in the NN one. The comparison of manufacturers' profits between the MN model and the NN model primarily depends on consumers' sensitivities for sales price and advertising promotion level. The manufacturer does not benefit from the RN model due to the lowest efficiency.

Coupled with three different online direct selling models and detailed analyses of the optimal solutions, this study has enriched the theoretical foundation of online direct selling. Moreover, this study extends the research of network externalities to the field of e-commerce, revealing the network externalities' influence on the decision-making of the e-supply chain.

The purpose of this paper is to provide some insights regarding the adoption of internet advertising by Iranian small and medium‐sized enterprises. The recent negative trends leading to a lack of competitive advantage in small businesses and the advantages of internet advertising makes it imperative to study various factors affecting this area of marketing.

This study reviewed 59 previous related studies, resulting in a comprehensive theoretical framework which explains the advantages of internet advertising for small to medium‐sized enterprises (SMEs). Via questionnaire, the paper compiles 346 Iranian experts’ opinions in order to test the validity and applicability of variables in Iran. A structural equation model and LISREL software were used to analyze the data.

A total of seven latent variables of internet advertising adoption were examined: advertising agencies, internet publishers, small and middle‐sized enterprises, government role, e‐commerce development and user types. The paper found that these constructs successfully explain internet advertising adoption by incorporating readiness and globalization stages. The small and medium‐sized enterprises were found to be the most significant for explaining internet advertising adoption.

The sample was restricted to Iranian experts.

This study offers one of the first attempts to build a comprehensive theoretical model explaining internet advertising adoption. Second, this study offers a new scale for internet advertising adoption with higher content validity.

This paper aims to examine the optimal promotion strategy of an e-retailer, who may advertise, or launch rebates initiative to encourage consumers' disseminating electronic word-of-mouth (eWOM) messages, with an aim to boost product sales.

This paper analyzes the decisions of the e-retailer in a two-period model, using utility function approach and backward induction method, and obtains the optimal solutions in four promotion strategies.

The study finds that rebate scheme greatly impacts the timing of advertising, and neither lower nor higher consumers' eWOM effort invariably benefits the retailer, rather, a medium level is the best choice for the retailer. When eWOM impact power is at a relatively high level, it can supplement advertising effect to attract more consumers' purchase. Otherwise, eWOM may counteract the role of advertising.

Different from the extant literature focusing on advertising or eWOM without rebates, the paper studies the issue of advertising and eWOM with rebates in two- period model which seldom addresses before the authors examine the optimal timing of advertising and eWOM with/without rebates in four promotion strategies i.e. the A-NE model the NE-A model the A-ER model and the ER-A model.

The purpose of this paper is to explore the effects of online advertising spending on automobile sales through both search and non-search advertising.

Sales data of the top 52 vehicle models were collected in two consecutive years in China. The advertising spending data of both formats were collected from a leading consulting company and a major search engine company. Then several empirical models were proposed to evaluate the effects of online advertising on automobile sales. Two extended models were further investigated for search advertising.

The results revealed that both formats of online advertising have significantly positive effects on automobile sales. However, excessive spending on non-search advertising does not help sales and a moderate budget is preferred. On the other hand, spending on search advertising has no such constraint to improve the vehicle sales.

The empirical findings have proved the importance of online advertising to the automobile companies and thus can help companies improve their decision making in online advertising allocation strategies.

This study provides a better understanding of the relationship between online advertising spending and automobile sales, and helps business to define sophisticated online advertising strategies to improve sales performance.

To explain and empirically test how different marketing communication channels interact with each other and contribute to brands’ diverging marketplace performance.

With a unique data set combining key variables of major passenger car brands, the paper takes a source-based perspective to investigate how firm-based communications, expert opinions and online consumer reviews interact and affect brands’ marketplace performance. Then the paper studies the three special boundary conditions under which online consumer reviews’ influence varies in competition with the other two established information sources. Lastly, a study was done to demonstrate the financial significance of investing in different information sources.

The results show that online consumer reviews mitigate the effectiveness of the other two information sources in driving brand sales. This mitigation effect is also magnified when the brand is weak, firm-based communications are modest and expert opinions are less favorable. The findings further suggest that in the emerging communication enterprise, firm-based and expert-based communications remain the core while user-based communication plays an indispensable competing and complementary role.

In the new digital era, firms are facing the daunting task of understanding and integrating multiple communication channels. The study provides important implications for both researchers and practitioners with respect to brand management and integrated communications.

Existing studies have demonstrated that each of the three communication efforts (by firms, experts and consumers) exerts a significant influence on product sales, but few studies have been conducted in settings marked by the coexistence of these efforts. In addition, the three communication efforts are likely to have different effects on brands with different market positions. The current study is contributing to the literature by filling the above gaps.

The paper seeks to indicate where resources should be directed to utilize online marketing communication (OMC) further, including the identification of the diversity of OMC adoption, prioritization and future potential.

A conceptual model of prioritization and potential of OMC, specified as a structural equation model is developed. Research data are collected from both Danish advertising agencies and major companies, and based on these data the model is estimated by using partial least squares (PLS).

The adoption of OMC by companies, as opposed to advertising agencies, is rather diverse. Companies should take responsibility for the holistic utilization of OMC, as well as the development of holistic prioritization methods. Special attention should be given to online relationship communication, as this discipline is the primary driver of confidence in future potential, and online interactive communication, which has the largest potential for improvement.

The research is based on a single geographic market (Denmark), and its transferability to other markets can be questioned. The geographical constraint also means that the sample is limited.

The paper presents original findings for online marketing communication planning and prioritization, and thereby adds to a green field that lacks both theory and practical recommendations.

The purpose of this paper is to investigate the unexplored part of the historical evolution of travel agencies in Spain, from the end of the 20th century to the 21st century. When examining promotion strategies, the study focuses on the change in marketing and public relations strategies based on the incorporation of information and communication technologies and, in particular, the use of the internet.

This study draws on a qualitative analysis of the different strategies used by traditional agencies and online agencies in Spain from the mid-19th century to the present. This analysis shows how traditional communication strategies survived at the beginning of the 21st century, together with other more innovative ones, while some disappeared, being eliminated by the new online travel agencies, which created a particular conception of marketing and communication. This paper is divided into the following parts: the introduction; the beginnings of travel agency promotion in the 20th century; the evolution of promotion in travel agencies since the late 20th century; communication innovation at the beginning of the 21st century; online travel agencies; and conclusions.

This study shows that although online agencies did not manage to position themselves with a large turnover, they generated advantages and sharpened their imagination to create a new, more economical advertising model, eliminating the costs of public relations and advertising campaigns. In addition, they allowed clients to have greater independence when making their reservations, while enabling them to monitor the tastes of potential and real clients and add blogs so that consumers could express their degree of satisfaction with the product or services provided by the agency.

The focus of attention is the travel agency sector in Spain and, more specifically, communication. Studies on travel agencies and their marketing have been very scarce and partial, impeding professionals in the tourism sector from having a broad vision to direct their promotional and public relations actions. The originality of this article lies in its making a comparison between two different visions of tourism marketing and, specifically, of travel agencies, that is, the traditional vision and the innovative one. It thus helps all professionals in the sector to value and improve their marketing and communication strategies.

The purpose of this study is to analyze the short-term development pattern and long-term development trend of the digital supply chain.

This study uses the combination of short-term game and long-term evolutionary game theory.

Findings of this study suggest that irrational decisions can make the evolutionary path of the digital supply chain complex and unpredictable.

This study proposes an evolutionary game model for the digital supply chain that can provide good guidance for the digitalization process of enterprises.