Cooperative Advertising and Price Discount Strategy of O2O Tourism Dual-Channel Supply Chain

Liu Jin Lin; Huang Long; Wen Shu; Wang Qi Min

doi:doi:10.11648/j.ijber.20221106.14

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Cooperative Advertising and Price Discount Strategy of O2O Tourism Dual-Channel Supply Chain

Liu Jin Lin, Huang Long, Wen Shu, Wang Qi Min

Published in International Journal of Business and Economics Research (Volume 11, Issue 6)

Received: 5 December 2022 Accepted: 21 December 2022 Published: 28 December 2022

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Abstract

With the rapid development of online tourism platforms such as Ctrip and Qunar, tourists ' consumption patterns and consumption habits have begun to change, and the distribution channels and marketing models of scenic spots have also changed. In the supply chain, cooperative advertising is a common way to increase market share. Scenic spots reduce the advertising costs of OTA through cost sharing and revenue sharing, and encourage them to carry out promotional advertising. At the same time, based on the competitive pressure brought by the digital economy, scenic spots have to implement price discounts and brand advertising to consolidate their existing market share. The scenic spot and OTA have a common terminal market. The two cooperate vertically and compete horizontally. The imbalance of advertising investment between channels may lead to channel competition and disharmony. Based on this, considering the joint influence of price discount and advertising on visitor market, the cooperative advertising strategy between scenic spots and OTAs (Online Travel Agency) is studied, and the optimal advertising level, advertising cost sharing ratio and price discount level of both parties under the three modes of unilateral cooperative advertising, bilateral cooperative advertising and strategic alliance are worked out respectively, and the influence of price discount on demand and profit under different modes is analyzed. The research results show that, (1) In the unilateral and bilateral advertising cooperation mode, the joint impact of price discounts and brand advertising and promotional advertising on market demand is regulated by commissions. Appropriate commissions can promote the mutual sharing of advertising costs between scenic spots and OTA, and the smooth progress of cooperative advertising; (2) the price discount strength of the unilateral model is always the largest, and when the market is more sensitive to promotional advertising, the price discount strength of the bilateral cooperative model is greater than that of the strategic alliance model; (3) the bilateral cooperation model achieves a Pareto improvement on the unilateral cooperation model, and the strategic alliance model achieves a Pareto improvement on the bilateral cooperation model.

Published in	International Journal of Business and Economics Research (Volume 11, Issue 6)
DOI	10.11648/j.ijber.20221106.14
Page(s)	325-334
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Tourism O2O Dual-Channel Supply Chain, Bilateral Cooperation, Price Discount, Pareto Improvement

References

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APA Style

Liu Jin Lin, Huang Long, Wen Shu, Wang Qi Min. (2022). Cooperative Advertising and Price Discount Strategy of O2O Tourism Dual-Channel Supply Chain. International Journal of Business and Economics Research, 11(6), 325-334. https://doi.org/10.11648/j.ijber.20221106.14

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ACS Style

Liu Jin Lin; Huang Long; Wen Shu; Wang Qi Min. Cooperative Advertising and Price Discount Strategy of O2O Tourism Dual-Channel Supply Chain. Int. J. Bus. Econ. Res. 2022, 11(6), 325-334. doi: 10.11648/j.ijber.20221106.14

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AMA Style

Liu Jin Lin, Huang Long, Wen Shu, Wang Qi Min. Cooperative Advertising and Price Discount Strategy of O2O Tourism Dual-Channel Supply Chain. Int J Bus Econ Res. 2022;11(6):325-334. doi: 10.11648/j.ijber.20221106.14

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@article{10.11648/j.ijber.20221106.14,
  author = {Liu Jin Lin and Huang Long and Wen Shu and Wang Qi Min},
  title = {Cooperative Advertising and Price Discount Strategy of O2O Tourism Dual-Channel Supply Chain},
  journal = {International Journal of Business and Economics Research},
  volume = {11},
  number = {6},
  pages = {325-334},
  doi = {10.11648/j.ijber.20221106.14},
  url = {https://doi.org/10.11648/j.ijber.20221106.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20221106.14},
  abstract = {With the rapid development of online tourism platforms such as Ctrip and Qunar, tourists ' consumption patterns and consumption habits have begun to change, and the distribution channels and marketing models of scenic spots have also changed. In the supply chain, cooperative advertising is a common way to increase market share. Scenic spots reduce the advertising costs of OTA through cost sharing and revenue sharing, and encourage them to carry out promotional advertising. At the same time, based on the competitive pressure brought by the digital economy, scenic spots have to implement price discounts and brand advertising to consolidate their existing market share. The scenic spot and OTA have a common terminal market. The two cooperate vertically and compete horizontally. The imbalance of advertising investment between channels may lead to channel competition and disharmony. Based on this, considering the joint influence of price discount and advertising on visitor market, the cooperative advertising strategy between scenic spots and OTAs (Online Travel Agency) is studied, and the optimal advertising level, advertising cost sharing ratio and price discount level of both parties under the three modes of unilateral cooperative advertising, bilateral cooperative advertising and strategic alliance are worked out respectively, and the influence of price discount on demand and profit under different modes is analyzed. The research results show that, (1) In the unilateral and bilateral advertising cooperation mode, the joint impact of price discounts and brand advertising and promotional advertising on market demand is regulated by commissions. Appropriate commissions can promote the mutual sharing of advertising costs between scenic spots and OTA, and the smooth progress of cooperative advertising; (2) the price discount strength of the unilateral model is always the largest, and when the market is more sensitive to promotional advertising, the price discount strength of the bilateral cooperative model is greater than that of the strategic alliance model; (3) the bilateral cooperation model achieves a Pareto improvement on the unilateral cooperation model, and the strategic alliance model achieves a Pareto improvement on the bilateral cooperation model.},
 year = {2022}
}

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TY  - JOUR
T1  - Cooperative Advertising and Price Discount Strategy of O2O Tourism Dual-Channel Supply Chain
AU  - Liu Jin Lin
AU  - Huang Long
AU  - Wen Shu
AU  - Wang Qi Min
Y1  - 2022/12/28
PY  - 2022
N1  - https://doi.org/10.11648/j.ijber.20221106.14
DO  - 10.11648/j.ijber.20221106.14
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 325
EP  - 334
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20221106.14
AB  - With the rapid development of online tourism platforms such as Ctrip and Qunar, tourists ' consumption patterns and consumption habits have begun to change, and the distribution channels and marketing models of scenic spots have also changed. In the supply chain, cooperative advertising is a common way to increase market share. Scenic spots reduce the advertising costs of OTA through cost sharing and revenue sharing, and encourage them to carry out promotional advertising. At the same time, based on the competitive pressure brought by the digital economy, scenic spots have to implement price discounts and brand advertising to consolidate their existing market share. The scenic spot and OTA have a common terminal market. The two cooperate vertically and compete horizontally. The imbalance of advertising investment between channels may lead to channel competition and disharmony. Based on this, considering the joint influence of price discount and advertising on visitor market, the cooperative advertising strategy between scenic spots and OTAs (Online Travel Agency) is studied, and the optimal advertising level, advertising cost sharing ratio and price discount level of both parties under the three modes of unilateral cooperative advertising, bilateral cooperative advertising and strategic alliance are worked out respectively, and the influence of price discount on demand and profit under different modes is analyzed. The research results show that, (1) In the unilateral and bilateral advertising cooperation mode, the joint impact of price discounts and brand advertising and promotional advertising on market demand is regulated by commissions. Appropriate commissions can promote the mutual sharing of advertising costs between scenic spots and OTA, and the smooth progress of cooperative advertising; (2) the price discount strength of the unilateral model is always the largest, and when the market is more sensitive to promotional advertising, the price discount strength of the bilateral cooperative model is greater than that of the strategic alliance model; (3) the bilateral cooperation model achieves a Pareto improvement on the unilateral cooperation model, and the strategic alliance model achieves a Pareto improvement on the bilateral cooperation model.
VL  - 11
IS  - 6
ER  -

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Author Information

Liu Jin Lin

School of Management Science and Engineering, Guizhou University of Finance and Economics, Guiyang, China
Huang Long

College of Business Administration, Guizhou University of Finance and Economics, Guiyang, China
Wen Shu

College of Business Administration, Guizhou University of Finance and Economics, Guiyang, China
Wang Qi Min

College of Business Administration, Guizhou University of Finance and Economics, Guiyang, China

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APA Style

Liu Jin Lin, Huang Long, Wen Shu, Wang Qi Min. (2022). Cooperative Advertising and Price Discount Strategy of O2O Tourism Dual-Channel Supply Chain. International Journal of Business and Economics Research, 11(6), 325-334. https://doi.org/10.11648/j.ijber.20221106.14

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ACS Style

Liu Jin Lin; Huang Long; Wen Shu; Wang Qi Min. Cooperative Advertising and Price Discount Strategy of O2O Tourism Dual-Channel Supply Chain. Int. J. Bus. Econ. Res. 2022, 11(6), 325-334. doi: 10.11648/j.ijber.20221106.14

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AMA Style

Liu Jin Lin, Huang Long, Wen Shu, Wang Qi Min. Cooperative Advertising and Price Discount Strategy of O2O Tourism Dual-Channel Supply Chain. Int J Bus Econ Res. 2022;11(6):325-334. doi: 10.11648/j.ijber.20221106.14

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@article{10.11648/j.ijber.20221106.14,
  author = {Liu Jin Lin and Huang Long and Wen Shu and Wang Qi Min},
  title = {Cooperative Advertising and Price Discount Strategy of O2O Tourism Dual-Channel Supply Chain},
  journal = {International Journal of Business and Economics Research},
  volume = {11},
  number = {6},
  pages = {325-334},
  doi = {10.11648/j.ijber.20221106.14},
  url = {https://doi.org/10.11648/j.ijber.20221106.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20221106.14},
  abstract = {With the rapid development of online tourism platforms such as Ctrip and Qunar, tourists ' consumption patterns and consumption habits have begun to change, and the distribution channels and marketing models of scenic spots have also changed. In the supply chain, cooperative advertising is a common way to increase market share. Scenic spots reduce the advertising costs of OTA through cost sharing and revenue sharing, and encourage them to carry out promotional advertising. At the same time, based on the competitive pressure brought by the digital economy, scenic spots have to implement price discounts and brand advertising to consolidate their existing market share. The scenic spot and OTA have a common terminal market. The two cooperate vertically and compete horizontally. The imbalance of advertising investment between channels may lead to channel competition and disharmony. Based on this, considering the joint influence of price discount and advertising on visitor market, the cooperative advertising strategy between scenic spots and OTAs (Online Travel Agency) is studied, and the optimal advertising level, advertising cost sharing ratio and price discount level of both parties under the three modes of unilateral cooperative advertising, bilateral cooperative advertising and strategic alliance are worked out respectively, and the influence of price discount on demand and profit under different modes is analyzed. The research results show that, (1) In the unilateral and bilateral advertising cooperation mode, the joint impact of price discounts and brand advertising and promotional advertising on market demand is regulated by commissions. Appropriate commissions can promote the mutual sharing of advertising costs between scenic spots and OTA, and the smooth progress of cooperative advertising; (2) the price discount strength of the unilateral model is always the largest, and when the market is more sensitive to promotional advertising, the price discount strength of the bilateral cooperative model is greater than that of the strategic alliance model; (3) the bilateral cooperation model achieves a Pareto improvement on the unilateral cooperation model, and the strategic alliance model achieves a Pareto improvement on the bilateral cooperation model.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Cooperative Advertising and Price Discount Strategy of O2O Tourism Dual-Channel Supply Chain
AU  - Liu Jin Lin
AU  - Huang Long
AU  - Wen Shu
AU  - Wang Qi Min
Y1  - 2022/12/28
PY  - 2022
N1  - https://doi.org/10.11648/j.ijber.20221106.14
DO  - 10.11648/j.ijber.20221106.14
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 325
EP  - 334
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20221106.14
AB  - With the rapid development of online tourism platforms such as Ctrip and Qunar, tourists ' consumption patterns and consumption habits have begun to change, and the distribution channels and marketing models of scenic spots have also changed. In the supply chain, cooperative advertising is a common way to increase market share. Scenic spots reduce the advertising costs of OTA through cost sharing and revenue sharing, and encourage them to carry out promotional advertising. At the same time, based on the competitive pressure brought by the digital economy, scenic spots have to implement price discounts and brand advertising to consolidate their existing market share. The scenic spot and OTA have a common terminal market. The two cooperate vertically and compete horizontally. The imbalance of advertising investment between channels may lead to channel competition and disharmony. Based on this, considering the joint influence of price discount and advertising on visitor market, the cooperative advertising strategy between scenic spots and OTAs (Online Travel Agency) is studied, and the optimal advertising level, advertising cost sharing ratio and price discount level of both parties under the three modes of unilateral cooperative advertising, bilateral cooperative advertising and strategic alliance are worked out respectively, and the influence of price discount on demand and profit under different modes is analyzed. The research results show that, (1) In the unilateral and bilateral advertising cooperation mode, the joint impact of price discounts and brand advertising and promotional advertising on market demand is regulated by commissions. Appropriate commissions can promote the mutual sharing of advertising costs between scenic spots and OTA, and the smooth progress of cooperative advertising; (2) the price discount strength of the unilateral model is always the largest, and when the market is more sensitive to promotional advertising, the price discount strength of the bilateral cooperative model is greater than that of the strategic alliance model; (3) the bilateral cooperation model achieves a Pareto improvement on the unilateral cooperation model, and the strategic alliance model achieves a Pareto improvement on the bilateral cooperation model.
VL  - 11
IS  - 6
ER  -

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