Research On Retailer’s Advance Selling Strategy Based On Advertising Impact

With the progress of information technology and the improvement of network environment,the cost of consumers’ access to information has been declining.Consumers’ needs and preferences have become an important factor affecting market changes.In the increasingly competitive market environment,retailers adopt different methods and strategies to stimulate the market and enhance product demand in order to maximize their profits and seize market share.Advance selling and advertising are the most commonly sales strategies used by retailers.They are also effective means to understand consumer demand,convey products’ information and influence consumer valuation.However,at present,most of the literature studies them as two separate aspects,and in the actual situation,the two are often used together.Therefore,this also gives the significance of this study.On the basis of the existing literature,this paper combines the knowledge of advance selling model and advertising strategy and introduces advertising factors into the advance selling model.On the one hand,it integrates the function expression of advertising with demand,consumer valuation and comprehensive impact into the advance selling model.From the perspective of retailers,this paper analyses the conditions for retailers to adopt advertising strategy and corresponding advance selling decisions.On the other hand,product diffusion and advertising advance selling model are combined.From the perspective of consumers,advance selling model with product diffusion is constructed to analyze the influence of diffusion effect on advance selling decision-making,and the change of price function is discussed through numerical analysis.Finally,through numerical analysis,this paper discusses the influence of the change of parameters in the advance selling model on retailer’s advance selling decision and retailer’s profit.The study shows that the ratio of cost to consumer valuation is the key factor affecting retailer’s strategy choice,and discount advance selling is the main strategy when retailers adopt advertising strategy.In addition,advertising’s impact factors and product diffusion’s impact factors will have an impact on retailers’ price decisions and returns.