The Optimal Decision of Customer-intensive Service Provider Based on Advertising Effect
Advertising can change the utility of customers in customer-intensive service and affect service providers'decisions.Therefore,customer-intensive service providers'optimal advertising intensity,service rate and price decisions were studied under the impact of advertising in the monopoly/duopoly market by constructing a queuing model.It is found that in the monopoly market,when the market demand is insufficient,service providers can explore potential customers by advertising and control the system congestion by adjusting the service rate and price.However,in a monopoly or duopoly market,when the market demand is sufficient,the decision making of service providers is no longer affected by the potential market demand.In the duopoly market where market demand is insufficient,there will be a stable equilibrium of zero profit between service providers through competition.In this equilibrium,the strategy of service providers should give up certain profits to protect the market share,and use better advertising to attract customers.In addition,it is found that service providers can gain higher profits when the market is monopolized or the market demand is sufficient through comparison.Meanwhile,compared with the traditional customer-intensive service decision model that does not consider advertising,the model can help service providers to gain higher profits by advertising.
万方数据
维普
