Study On Optimal Network Distribution Chanels With Persuasive Advertising And Pricing Competition

Currently there are more and more homogeneous products in e-commerce market.It is crucial for mamufacture to select the correct online distribution channel, so as tomeet the demand of consumer and achieve maximizing profits in e-commerce marketwhich full of fierce advertising and pricing competition.The purpose of this paper is to study the best mix strategies of persuasiveadvertising and different network distribution channels from perspective ofmanufacture, and the competitive effects of persuasive advertising and differentnetwork distribution channels to price competition. For the aim of this paper,intermediate economics, supply chain operations and game theory are used to establishmodels with persuasive advertising and different network distribution channels.Qualitative and quantitative methods such as comparative static analysis, Numericalexamples of Excel and origin8.5software are used to study the impact of persuasiveadvertising and different networks distribution channels to price competition.In the first palce, the e-commerce market is chassified as one-dismensional andtwo-dismesional e-commerce market according to whether there is classification ofconsumer behaviour psychology. Then we build price competition models consideringperspective advertising and different network distribution channels which includedirect and indirect online sales from the perspective of manufacture. There are twostrategies in indirect online sales which are manufacture launch advertising and onlineretailer launch advertising. The best strategies of manufacture and the impact ofenvironment parameters to equilibrium results are reached by comparing threeequilibrium results in either market circumstances and analyzing the sensitivity ofequilibrium results to environment parameter.Secondly，the effects of persuasive advertising and different distribution chanelsto price competition in different e-commerce market are studied based on previous text.Price changes brought by persuasive advertising and online retailer are reached incompetitive static analysis; and the sensitivity of price changes to parameters is studied in differential criterion. Important conclusions are reached by comparing theresearch in different market.At last, numerical examples economic affairs analysis on above reaeach arestudied to verify the scientific of this paper. This paper’s sentific is verified bynumerical examples about the best competitive strategies and price competition bufferof competitive factors, and by analysis of economic affairs. Finally the problems andproposal in e-commerce market are proposed.