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A discount strategy in word-of-mouth marketing
Zhang, Tianrui1; Li, Pengdeng1; Yang, Lu Xing2; Yang, Xiaofan1; Tang, Yuan Yan3; Wu, Yingbo1
2019-07-30
Source PublicationCommunications in Nonlinear Science and Numerical Simulation
ISSN1007-5704
Volume74Pages:167-179
Abstract

This paper addresses the issue of discount pricing in word-of-mouth (WOM) marketing. First, we propose a novel discount strategy we refer to as the Influence-Based Discount (IBD) strategy, in which each buyer would enjoy a discount that is linearly proportional to his/her influence in the WOM network. For the purpose of evaluating the performance of an IBD strategy, we model the associated WOM spreading process as a higher-dimensional nonlinear differential dynamical system we refer to as the Dormant-Potential-Adopting (DPA) model. Next, we examine the dynamics of a DPA model through computer experiments. Thereby, we estimate the expected net profit of an IBD strategy and inspect how different factors influence this profit through numerical experiments. On this basis, we suggest some feasible promotional measures.

KeywordDiscount Pricing Marketing Profit Wom Marketing Wom Spreading Model
DOI10.1016/j.cnsns.2019.03.015
URLView the original
Language英語English
WOS IDWOS:000464529500011
Scopus ID2-s2.0-85063074236
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Citation statistics
Document TypeJournal article
CollectionUniversity of Macau
Affiliation1.School of Big Data & Software Engineering, Chongqing University, Chongqing, 400044, China
2.School of Information Technology, Deakin University, Melbourne, 3125, Australia
3.Department of Computer and Information Science, The University of Macau, Macau, China
Recommended Citation
GB/T 7714
Zhang, Tianrui,Li, Pengdeng,Yang, Lu Xing,et al. A discount strategy in word-of-mouth marketing[J]. Communications in Nonlinear Science and Numerical Simulation, 2019, 74, 167-179.
APA Zhang, Tianrui., Li, Pengdeng., Yang, Lu Xing., Yang, Xiaofan., Tang, Yuan Yan., & Wu, Yingbo (2019). A discount strategy in word-of-mouth marketing. Communications in Nonlinear Science and Numerical Simulation, 74, 167-179.
MLA Zhang, Tianrui,et al."A discount strategy in word-of-mouth marketing".Communications in Nonlinear Science and Numerical Simulation 74(2019):167-179.
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