Optimizing advertising and quality strategies in an oligopoly

Consumer preference was almost ignored when scholars discussed the factors that influenced advertising and quality strategies of manufactures in many literatures before. Therefore, I took it into consideration to probe into advertising and quality strategies in an oligopoly here. The result was that many conclusions were not the same with those without consumer preference. For example: manufactures with low quality brand will have larger market share rate and advertising expenditure and profit level if the two product is more than one that are quality elasticity inverse proportion and market share rate to sensitivity ofadvertising expenditure in unit cost. Moreover, manufactures with low quality brand will have larger market share rate than high ones if the two product above is equal to one and consumers prefer low quality brands to high ones in a duopoly market.