Dynamic Discount Pricing in Competitive Marketing

Chen, Jian; Yang, Lu‐Xing; Huang, Da-Wen; Xiao, Yang; Tang, Yuan Yan

doi:10.1109/access.2019.2945884

Cited by 5 publications

(9 citation statements)

References 39 publications

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“…An individual-based WOM propagation model classifies each OSN individual into a few classes based on his state [19]- [22]. Inspired by [16], [20] suggested an individualbased positive/negative WOM mixed propagation model.…”

Section: A Wom Propagation Modelmentioning

confidence: 99%

“…Later, [19] generalized this model by considering dynamic influence-based discount pricing mechanism. Recently, [22] advised an individual-based WOM propagation model with dynamic competitive mechanism. Such WOM propagation models enjoy the striking advantage that they apply to all OSNs.…”

Section: A Wom Propagation Modelmentioning

confidence: 99%

“…Recently, optimal control theory has been applied to the maximization of marketing profit by means of WOM propagation. For instance, [19] studied the marketing profit maximization problem in the framework of influence-based discount pricing, [20] dealt with the problem in the presence of both positive and negative WOMs, and [22] addressed this problem in the context of competitive marketing. To our knowledge, the marketing profit maximization problem in the presence of after-sale service has not been addressed through optimal control approach.…”

Section: B Optimal Control Approach To Wom Marketingmentioning

confidence: 99%

“…First, the combined effect of the maintenance strategy and the discount pricing strategy on WOM marketing should be examined [19], [21]. Second, this work may be adapted to competitive WOM marketing campaigns [22], [34]- [37]. Next, in the presence of competing rivals, it is appropriate to deal with the marketing profit maximization problem in the framework of game theory [22], [37], [38].…”

Section: Conclusion and Remarksmentioning

confidence: 99%

“…Second, this work may be adapted to competitive WOM marketing campaigns [22], [34]- [37]. Next, in the presence of competing rivals, it is appropriate to deal with the marketing profit maximization problem in the framework of game theory [22], [37], [38]. Finally, the used methodology may be applied to some other areas such as rumor control [39]- [42] and defense of advanced persistent threat [43]- [47].…”

Section: Conclusion and Remarksmentioning

confidence: 99%

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Dynamic Maintenance Strategy for Word-of-Mouth Marketing

et al. 2020

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After-sale service is an integrable part of marketing activities. The after-sale service experience of a consumer can be measured by the dynamic maintenance (DM) strategy used by the merchant, i.e., the instantaneous fractions of the maintenance cost paid by the merchant in the total maintenance cost at all time. This paper aims to develop an optimal DM strategy for a word-of-mouth (WOM) marketing campaign. First, we propose an individual-based WOM propagation model in which the effect of the DM strategy is accounted for. Second, we convert the original problem into an optimal control problem, where the objective functional stands for the expected marketing profit, each optimal control stands for an optimal DM strategy. Third, we derive the optimality system for the optimal control problem. By solving the optimality system, we get a potential optimal control. Next, through comparative experiments we conclude that the DM strategy associated with the potential optimal control outperforms most DM strategies in terms of the expected marketing profit. Therefore, we recommend this potential DM strategy. Finally, we examine the effect of some factors on the expected marketing profit for the potential DM strategy. Our findings help to enhance the marketing profit of a WOM marketing campaign.

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Section: A Wom Propagation Modelmentioning

confidence: 99%

Section: A Wom Propagation Modelmentioning

confidence: 99%

Section: B Optimal Control Approach To Wom Marketingmentioning

confidence: 99%

Section: Conclusion and Remarksmentioning

confidence: 99%

Section: Conclusion and Remarksmentioning

confidence: 99%

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Dynamic Maintenance Strategy for Word-of-Mouth Marketing

et al. 2020

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National brands versus store brands: retailer fight against national brands to improve store brands via a dynamic discount pricing strategy

Yahyavi,

Taleizadeh,

Thaichon

2024

Oper Res Int J

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Today, there is a lot of competition between competitors in the market of different products. The level of complexity of relationships and behavior of active players in the market has also increased. So that a manufacturer and retailer work together to increase the profit of the supply chain through the sale of products. On the other hand, the retailer and the manufacturer as competitors are competing with each other to sell more of their products. This issue has increased the complexity of the relationship between retailers and manufacturers. This study aims to explore how retailers can strengthen the self-introduced store brand (SB) and resist the pressures of manufacturers by using dynamic discount pricing (DDP) strategy. Numerical examples are proposed to clearly explain the validity and applicability of the model. Based on the managerial insights developed by analyzing the model's results, we evaluated the influences of DDP strategy on the retail prices and demands of national brands (NB) and SB and the profit of the retailer and the manufacturer. We found that discounts on the manufacturer's product by the retailer increase the demand for both NB and SBs. An increase in demand leads to an increase in the profits of manufacturers and retailers. However, the increase in the manufacturer's profit does not compensate for the decrease in his market share. In other words, the introduction of an SB always causes damage to the manufacturer, but the amount of damage depends on various factors. These findings offer manufacturers and retailers useful insights and help them adopt effective marketing strategies.

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Effective Multiplatform Advertising Policy

Huang

Yang

et al. 2022

IEEE Trans. Syst. Man Cybern, Syst.

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Dynamic Discount Pricing in Competitive Marketing

Cited by 5 publications

References 39 publications

Dynamic Maintenance Strategy for Word-of-Mouth Marketing

Dynamic Maintenance Strategy for Word-of-Mouth Marketing

National brands versus store brands: retailer fight against national brands to improve store brands via a dynamic discount pricing strategy

Effective Multiplatform Advertising Policy

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