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GameOn: A Game-Theoretic Approach to Digital Marketing and Online Lead Generation for Oligopoly Markets
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| 1.62 MB | Adobe PDF |
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The importance and role of digital marketing in today’s competitive world is rapidly increasing. The surge and rapid expansion of digital technologies and especially, the Internet has propelled a shift in the consumers’ habits and consequently in the strategies that firms must employ to attract the maximum number of consumers possible towards their products and/or services. Within these efforts, the online lead generation process is gaining steam and is currently an extremely important activity which most firms in most industries perform. This process has been a target of much attention very recently with several articles published in world renowned business magazines and websites, however up until now, no scientific methodology has been proposed to advise firms in the optimal quantity of online leads to be generated.
This research suggests the application of Game Theory to develop a useful model that has the potential to help digital marketing managers in their task of selecting the optimal quantity of online leads to be generated for the period in preparation in the most efficient and effective way possible in order to achieve their objectives. The proposed model, GameOn, can be used in several scenarios evidencing its wide flexibility. GameOn is developed with two different functional forms, the natural logarithm and square root, to provide digital marketing managers with the choice of which best fits their data and select it.
An application scenario is developed, as well as a case study, and their results discussed in depth. Two types of equilibrium, Nash and Stackelberg, are determined and discussed. With very satisfactory and encouraging results, the potential, efficiency and effective improvements brought on by the use of GameOn are evaluated and discussed and other possible applications scenarios of GameOn are introduced.
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Digital Marketing Game Theory Online Lead Generation Efficiency Effectiveness