[1] Wang Yan, Mei Shue, Xu Ruize, Zhong Weijun, et al. Effects of online advertising and consumer engagement on a social media platform [J]. Journal of Southeast University (English Edition), 2023, 39 (4): 426-434. [doi:10.3969/j.issn.1003-7985.2023.04.012]

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Journal of Southeast University (English Edition)[ISSN:1003-7985/CN:32-1325/N]

Volumn:

39

Issue:

2023 4

Page:

426-434

Research Field:

Economy and Management

Publishing date:

2023-12-20

Info

Title:

Effects of online advertising and consumer engagement on a social media platform

Author(s):

Wang Yan;  Mei Shu’e;  Xu Ruize;  Zhong Weijun

School of Economic and Management, Southeast University, Nanjing 211189, China

Keywords:

advertising;  online platform;  social media retailer;  equilibrium;  cost-sharing

PACS:

C934

DOI:

10.3969/j.issn.1003-7985.2023.04.012

Abstract:

To investigate the impact of online advertising and consumer engagement on profits, an exponential demand function is proposed to capture user behavior on a social media platform with a two-echelon supply chain model. According to the different subjects of advertising cost, three sales models are proposed: manufacturers bearing advertising cost, retailers bearing advertising cost, and manufactures and retailers sharing advertising cost. Meanwhile, three corresponding mathematical models are constructed for analysis. The equilibrium results demonstrate that improving consumer engagement can help the players earn more profits;however, typical online retailers are often reluctant to bear costs under any circumstances. When community diffusion is low, social media platforms are willing to incur a proportion of advertising costs to attract more user engagement. More meaningful management insights indicate that community diffusion has a more significant effect on manufacturers’ profit. In the context of social media, supply chain players should leverage advertising to improve social community diffusion rather than focusing on the cost-sharing ratio.

References:

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Memo

Memo:

Biographies: Wang Yan(1983—), female, Ph.D. candidate; Mei Shue(corresponding author), female, doctor, professor, meishue@seu.edu.cn.
Citation: Wang Yan, Mei Shu’e, Xu Ruize, et al.Effects of online advertising and consumer engagement on a social media platform[J].Journal of Southeast University(English Edition), 2023, 39(4):426-434.DOI:10.3969/j.issn.1003-7985.2023.04.012.

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