A dynamic discount pricing strategy for viral marketing

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

2 Scopus Citations
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Author(s)

  • Xiang Zhong
  • Juan Zhao
  • Lu-Xing Yang
  • Xiaofan Yang
  • Yingbo Wu
  • And 1 others
  • Yuan Yan Tang

Related Research Unit(s)

Detail(s)

Original languageEnglish
Article numbere0208738
Journal / PublicationPLoS ONE
Volume13
Issue number12
Publication statusPublished - 28 Dec 2018

Link(s)

Abstract

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.

Research Area(s)

Citation Format(s)

A dynamic discount pricing strategy for viral marketing. / Zhong, Xiang; Zhao, Juan; Yang, Lu-Xing; Yang, Xiaofan; Wu, Yingbo; Tang, Yuan Yan.

In: PLoS ONE, Vol. 13, No. 12, e0208738, 28.12.2018.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

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