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A dynamic discount pricing strategy for viral marketing

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Version 3 2024-06-18, 12:37
Version 2 2024-06-04, 14:35
Version 1 2019-01-23, 14:39
journal contribution
posted on 2024-06-18, 12:37 authored by X Zhong, J Zhao, Luxing YangLuxing Yang, X Yang, Y Wu, YY Tang
Viral marketing has been one of the main marketing modes. However, theoretical study of viral marketing is still lacking. This paper focuses on the problem of developing a cost-effective dynamic discount pricing strategy for a viral marketing campaign. First, based on a novel word-of-mouth propagation model, we model the original problem as an optimal control problem. Second, we show that the optimal control problem admits an optimal control and present the optimality system for solving the optimal control problem. Next, we solve some optimal control models to get their respective optimal dynamic discount pricing strategies. Finally, we examine the effect of some factors on the maximum marketing profit. These results contribute to gaining insight into viral marketing.

History

Journal

PLoS ONE

Volume

13

Article number

ARTN e0208738

Pagination

1 - 19

Location

United States

Open access

  • Yes

ISSN

1932-6203

eISSN

1932-6203

Language

English

Publication classification

C1 Refereed article in a scholarly journal

Copyright notice

2018, Zhong et al.

Issue

12

Publisher

PUBLIC LIBRARY SCIENCE