Abstract
With the rapid development of online social networks (OSNs), more and more product companies are focusing on viral marketing of products through the word-of-mouth effect. For product companies, designing effective marketing strategies is important for obtaining profit. However, most existing research focuses on effective influence maximization analysis to disseminate information widely, rather than explicitly incorporating pricing factors into the design of intelligent marketing strategies. In this paper, we have studied the product’s marketing strategy and pricing model. We assume that the monopolistic seller divides product marketing into two stages, the regular price stage and the discount price stage. All users have their own expected price of the product. Only when the product price is not higher than the user’s expected price, the user will adopt the product. Therefore, we propose a pricing model named Two-stage Pricing with Discount Model (TPDM). We propose that companies use two marketing methods: Advertisement Marketing (AM) and Word-of-mouth Marketing (WM). To achieve the goal of maximizing the profit of product companies, we propose a Two-stage with Discount Greedy Algorithm (TSDG) to determine product price and discount rate. In order to study the impact of advertising and word-of-mouth marketing on product pricing on online social networks, we use several real social network data sets for experiments. The experimental results show that advertising marketing can significantly increase the profit of product companies.
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Acknowledgment
This work is supported by National Natural Science Foundation of China (No. 61772154). It was also supported by the Shenzhen Basic Research Program (Project No. JCYJ20190806143011274).
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Yuan, H., Liang, Z., Du, H. (2020). Two-Stage Pricing Strategy with Price Discount in Online Social Networks. In: Wu, W., Zhang, Z. (eds) Combinatorial Optimization and Applications. COCOA 2020. Lecture Notes in Computer Science(), vol 12577. Springer, Cham. https://doi.org/10.1007/978-3-030-64843-5_13
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