REGISTRATION CERTIFICATE
KV #19905-9705 PR dated 02.04.2013.
FOUNDERS
RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)
According to the decision No. 802 of the National Council of Television and Radio Broadcasting of Ukraine dated 14.03.2024, is registered as a subject in the field of print media. ID R30-03156
PUBLISHER
Liburkina L. M.
SITE SECTIONS
Main page
Editorial staff
Editorial policy
Annotated catalogue (2011)
Annotated catalogue (2012)
Annotated catalogue (2013)
Annotated catalogue (2014)
Annotated catalogue (2015)
Annotated catalogue (2016)
Annotated catalogue (2017)
Annotated catalogue (2018)
Annotated catalogue (2019)
Annotated catalogue (2020)
Annotated catalogue (2021)
Annotated catalogue (2022)
Annotated catalogue (2023)
Annotated catalogue (2024)
Thematic sections of the journal
Proceedings of scientific conferences
|
 
BUSINESS INFORM №2-2015The title and content ABSTRACTS AND INFORMATION ABOUT AUTHORS
19
Section: Economic and Mathematical Modeling UDC 339.1; 330.4; 658.6 Pursky O. I., Grynyuk B. V., Shestopal D. A. Simulation of Advertising Costs on Electronic Trade Market (p. 113 - 118)
In the article, a simulation of advertising costs in electronic commerce is carried out. A modification of the classical Salop model to correct for the influence of Internet sellers on consumer preferences by means of non-informational advertising has been implemented. In the modified model, advertising costs are implicit function parameter in consumer utility, which shifts the demand curve immediately, increases the consumer utility and the willingness of consumers to make purchases. Relationships of amounts of advertising expenses, number of sellers and volumes of electronic trading market have been explored. It has been displayed that with expansion of trade market advertising costs of on-line sellers are exponentially increasing. The increase in the number of on-line sellers helps to reduce the advertising costs, and consequently, consumer utility of items for each customer is reduced, which in turn lowers the maximum price level, which can be set by a seller. With a permanent number of consumers in the market, growth of advertising costs when reaching the limit of saturation does not increase the target audience and the level of readiness to purchase advertised products. Expansion of electronic trade market after reaching certain values leads to a decrease in the number of on-line sellers in the market, in this case, increasing advertising costs begin to exceed the sellers profit from the market expansion. Keywords: e-commerce, simulation, advertising costs, expansion of trade market Fig.: 4. Formulae: 16. Bibl.: 26. Pursky Oleg I. – Doctor of Sciences (Physics and Mathematics), Professor, Department of Economic Cybernetics, Kyiv National University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine) Email: [email protected] Grynyuk Bogdan V. – Postgraduate Student, Department of Economic Cybernetics, Kyiv National University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine) Shestopal Denys A. – Postgraduate Student, Department of Economic Cybernetics and Information Systems, Kyiv National University of Trade and Economics (19 Kіoto Str., Kyiv, 02156, Ukraine)
Article is written in UkrainianDownloads/views: 297 | Download article (pdf) -  |
Reference to this article: Pursky, Oleg I., Grynyuk, Bogdan V., and Shestopal, Denys A. (2015) “Simulation of Advertising Costs on Electronic Trade Market.” Business Inform 2:113–118.
|
FOR AUTHORS
License Contract
Conditions of Publication
Article Requirements
Regulations on Peer-Reviewing
Publication Contract
Current Issue
Frequently asked questions
INFORMATION
The Plan of Scientific Conferences
OUR PARTNERS
Journal «The Problems of Economy»
|