Dynamic Maintenance Strategy for Word-of-Mouth Marketing

Abstract

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.

Containing Misinformation Spread: A Collaborative Resource Allocation Strategy for Knowledge Popularization and Expert Education

“…Suppose that the truth can be released to three specific groups of individuals in the way of expert education, where (a) group B 1 consists of the individuals v 16 Besides, in order to show the influences of arbitrary network topological structures, the following three networks are involved in our experiments. e first one is a 100-node small-world network obtained from [35,44]. We denote this network by G sw .…”

“…We denote this network by G sw . e second one is a 100-node scale-free network obtained from [35,44]. We denote this network by G sf .…”

Maximize Expected Profits by Dynamic After‐Sales Service Investment Strategy Based on Word‐of‐Mouth Marketing in Social Network Shopping

“…Users' WOM feedback data was used to mine information that is conducive to enterprises' innovation or growth [13][14][15]. A dynamic discount pricing strategy aiming at maximizing product profits based on WOM marketing was proposed [16][17][18]. Using WOM as an epidemic, a framework was constructed to discuss the impact of WOM on sales based on epidemic models [19][20][21].…”

Utilization of Word-of-Mouth Marketing Strategy in Culinary Business

“…A study on the Word of Mouth marketing communication strategy was conducted by Atmariani Artanti, et al In the study, it was stated that the word of mouth marketing communication strategy in the culinary business was considered stronger in influencing sales intensity because of the habits of people who often gathered and told their experiences to others. This word of mouth marketing communication strategy is very successful and is able to influence purchasing decisions [3]. Research owned by Hasta Nirmaya states that this marketing communication strategy can strengthen cooperation between marketing groups both pre-sales and post-sales and help satisfy consumers [4].…”