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Chinese Journal of Management Science ›› 2017, Vol. 25 ›› Issue (7): 123-133.doi: 10.16381/j.cnki.issn1003-207x.2017.07.014

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The Decisions of Domestic Brands' Foreignized Advertisements Based on Consumers' Worships and Stereotypes about Everything Foreign

XU Shi-kang1,2, LIAO Cheng-lin1   

  1. 1. College of Economics and Business Administration of Chongqing University, Chongqing 400044, China;
    2. Chongqing University of Arts and Sciences, Yongchuan Chongqing 402160, China
  • Received:2015-03-16 Revised:2016-04-28 Online:2017-07-20 Published:2017-09-25

Abstract: Nowadays, imports and goods from joint ventures are flooding Chinese market and have occupied nearly half of it, leaving domestic brands a fierce competition. The fact that so many consumers in China demonstrate worships of foreign goods and have stereotypes about them has made serious effects on sales of domestic goods and become a threat to their growth and development. Thus, false foreign brands emerge with times in this cruel society. It is quite common to see foreign oriented phenomena here and there, however, there are few study and researches on advertisements about them. And the present situation of market and study is in need of related analysis and study to draw more experts' attention. Based on the present situation that consumers have negative attitudes to local brands and aiming at profiting more from foreignization of domestic brands, consumers' stereotypes about foreign goods are set as γi, and foreignized advertisements' effects are as Δα. By building models of the competition between manufacturers' profits and retailers', consumers' stereotypes about foreign goods and decisions of foreignized advertisements on how it can affect expected profits are discussed. To solve the problem of making decisions, considering the supply-chain system composed of single manufacturer and single retailer, three different models of supply-chain's competition for profits are built, answers are found, the wholesale price, the retail price and their profits are compared and best-balanced and sensitive analysis on making models of foreignized advertisements is made. Firstly, according to relations of supply-chain and market's advertisement strategies and based on optimum decision variables of manufacturers and retailers, three models of capability of profits are built: no advertisements, common advertisements and foreignized advertisements; secondly, comparisons and analysis on corresponding index for models of advertisements strategies are made and its function characters are discussed and relevant proposition and certification are got; finally, combining the market's situation, numerical simulation is offered, its validity is proved and consumers' stereotypes about foreign goods and foreignized advertisements' effects on expected profits are analyzed. The results mainly include: manufacturers who choose foreignized advertisements make the highest wholesale price, retail price and their expected profits; those who choose common advertisements take the second place; those without advertisements get the lowest numbers; there exist the only thresholds γi* and Δα* for consumers' stereotypes about foreign goods and foreignized advertisements' effects and they shape the concave function with the whole expected profits from foreignized advertisements and the whole expected profits' monotonicity varies inversely on either side of the thresholds. The results show that: (1) the one with foreignized advertisements makes the most expected profits among the three decisions on advertisements; (2) consumers' stereotypes about foreign goods and the impact factors of foreignized advertisments have great effects on expected profits and they each have corresponding thresholds which can optimize expected profits within a certain confine. All the parameters' relationship and changes of numerical values source from researches on marketing experience, which presents a reasonable proportion and mutual influences of corresponding relations. The validity and applicability of related conclusions are proved. In the context of the fierce markets competition home and abroad, this research can draw management enterprises and experts' attention to consumers' stereotypes about foreign goods, which makes them lay stress on domestic brands' foreignized advertisements and provides them with some managing inspiration and ideas about promoting the competitiveness of domestic brands; meanwhile, for the stereotypes about consumption and the foreignization of selling and marketing, this paper provides a new perspective for other experts to do related researches.

Key words: consumers' worships of foreign goods, rate of stereotypes, foreignized advertisements, domestic brand product

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