The Research on Product Pricing and Platform Self-fulfillment Strategies in the Sharing Economy
分享經濟下產品定價和平臺自營策略研究
Student thesis: Doctoral Thesis
Author(s)
Related Research Unit(s)
Detail(s)
Awarding Institution | |
---|---|
Supervisors/Advisors |
|
Award date | 15 Mar 2023 |
Link(s)
Permanent Link | https://scholars.cityu.edu.hk/en/theses/theses(9474d8dc-1500-4537-957b-e49b1431817a).html |
---|---|
Other link(s) | Links |
Abstract
The Internet platform is used by the sharing economy to allocate idle resources as efficiently as possible, increasing resource usage efficiency while lowering the need for new goods. The sharing economy advocates shared utilization and intensive development, emphasizes effective matching between the supply and demand sides, and pursues a dynamic, timely, precise, and effective balance between supply and demand. It also emphasizes the relative separation of ownership and use rights. In 2021, China's sharing economy market transaction size is about 328.81 billion RMB, which is still about 9.2% year-on-year growth from 2020 despite the unfavorable factors of the epidemic. In addition to the stable development of tangible product sharing fields such as transportation, accommodation, office and rechargeable battery, intangible product sharing fields such as life services and knowledge skills are developing more rapidly, with the market size of life services and knowledge skills sharing economy being 1,711.8 billion yuan and 454 billion yuan respectively, ranking first and third in the overall market size of sharing economy. According to the types of sharing products, sharing products can be divided into tangible products and intangible products; sharing platforms may be separated into self-owned sharing platforms and personal sharing platforms depending on whether they engage in sharing. Different products are shared in different forms and vehicles, and they have different impacts on the operating model of the platform, but there is not much research on this issue. Consequently, this research investigates the functioning strategies of the platform in various scenarios and the pricing strategies of shared items.
Starting with the fundamental market structure of the individual sharing model for physical goods, this article first analyzes the effects of the rise of sharing markets on buyers, sellers, and sharing platforms. Additionally, it examines the best business model for platforms to use in the context of their involvement in the personal sharing market for physical goods. Additionally, this research builds a utility model for the personal sharing market for intangible goods and investigates the best pricing and platform operating techniques in light of intangible product sharing. Additionally, it examines the best economic model for the platform given its involvement in the self-owned sharing market for intangible goods. This study provides theoretical support and decision basis for the development of product pricing strategies and the choice of platform self-fulfillment strategies for sharing economy platforms facing different sharing products and different market contexts. The main work and innovation points of this paper are as follows:
1) First, the product usage strategies of consumers and pricing strategies of manufacturers in the personal sharing market for tangible products are studied, and the impact of the emergence of sharing markets on consumers, manufacturers, and sharing platforms is analyzed. Starting from the idle time of products, this study constructs an economic model by considering both the time allocation of two types of consumers using shared products and the impact of sharing markets on the participants in different periods, and investigates the impact of the emergence of personal sharing markets for tangible products on manufacturers' pricing strategies, consumers' product use time, consumer surplus and social welfare. The study's findings indicate that (1) personal sharing items are advantageous to all customers in a short-term ideal sharing market when producers fail to promptly change pricing. (2) Since manufacturers' earnings and consumer welfare rely on both sorts of customers in the market, producers in an ideal sharing market are likely to raise prices over time. (3) Depending on the scale of the platform's draws and the distribution of the two categories of customers, manufacturers' earnings, consumer surplus, and social welfare may not increase when transaction costs and draw fees are taken into account. The existing literature treats sharing markets only as a simple complement to traditional markets, ignoring the time allocation to the product in the sharing process and the impact on the participants. By effectively improving the existing research framework by considering the time-of-use feature of tangible products, this study provides important new managerial insights into consumers' time-of-use decisions, manufacturers' product pricing strategies, and platform draw decisions in individual sharing markets for tangible products.
2) Second, the optimal operating strategy of platforms involved in the self-owned sharing market of tangible products considering product cost and consumer structure is studied, and the optimal business model choice for sharing platforms is analyzed and derived. This study builds an economic model by taking into account both the proportion of two types of consumers in the market and the cost of the product. It then examines the best business model selection strategy for the sharing platform with the aim of maximizing the platform's profit. The study starts from the underlying market structure, i.e., the fully self-owned sharing model. The findings indicate that (1) the totally self-owned sharing model is the best course of action for the platform when the share of high-type customers is sufficiently high. (2) The optimal mode for the sharing platform depends on the cost of self-owned products when the proportion of high-type consumers is moderate, i.e., when the number of both types of consumers is equal. The individual sharing model is the best option for the platform when the cost of self-owned products is low or high. (3) When the percentage of high-type consumers is low, the best business model for the sharing platform depends on the price of self-supporting goods: when the price of self-supporting goods is high or low, adopting the partial self-supporting model is the best course of action for the platform; when the price of self-supporting goods is moderate, adopting the full self-supporting sharing model is the best course of action for the platform. best course of action. When platforms accept self-owned goods, the current literature overlooks the variety and complexity of business model options. This study offers crucial guidance for the selection of the best business models for sharing platforms when confronted with various market structures and product prices by taking into account the features of the fraction of tangible product sharing platforms that supply self-owned items.
3) Then, the platform optimal pricing strategy and online dynamic review management strategy in the personal sharing market of intangible products are investigated. This study builds an economic model by taking into account the fair price under the influence of social preferences and the negative utility produced by consumers' deviation from the fair price, starting from the underlying market structure, i.e., the subscription pricing model. We then collect data pertaining to the Douyu platform to study the optimal pricing strategy and operation strategy of the intangible product sharing platform with the goal of maximizing platform profit. The findings indicate that: (1) The operating costs of the platform and the social preference coefficient of the consumer group both affect the sharing platform's optimal pricing strategy. When the operating costs of the platform are relatively low and the social preference coefficient of the consumer group is relatively high, the reward pricing model is the best option. (2) The profit of the sharing platform improves positively as the number of dynamic comments shared online increases; conversely, when the number of dynamic comments shared online climbs too much, the profit of the sharing platform increases positively as well. When there are too many dynamic remarks made during online sharing, the profit of the platform will be pushed out. (3) Consumers' utility jointly depends on the base utility of online sharing, the utility of online interaction, the negative utility of deviation from fair price and the size of network utility. The existing literature only considers people's motivation to share online live, ignoring how online live sharing platforms develop their pricing strategies. By introducing reward pricing, a postpaid strategy, into intangible product sharing, this study effectively addresses the pricing challenges of intangible product sharing and provides important management insights for intangible product sharing platforms to develop pricing strategies and operational strategies.
4) Finally, in order to choose the best business model for the sharing platform, the study is done on the platform's ideal operating strategy taking into account the sharing quality, traffic conversion rate, and output efficiency in the self-owned sharing market of intangible items. This study constructs an economic model from the underlying market structure, i.e., the fully self-owned sharing model, by considering the sharing quality, traffic conversion rate, and output efficiency of both self-owned and personal sharing anchors, and investigates the optimal business model selection strategy for online sharing live streaming platforms with the goal of maximizing platform profits. The results of the study show that: (1) depending on the magnitude of the draw ratio, the sharing platform implements a completely self-owned sharing model. Additionally, the threshold of platform disadvantage is larger when the fixed cost of self-owned sharing anchors is higher; it is lower when the live quality and traffic conversion rate of self-owned sharing anchors. (2) The sharing platform fully adopts individual sharing model depends on the quality of individual live sharing. (3) The platform also adopts mixed model depends on the difference of reward and quality of both types of sharers. (4) The effort level of sharers will affect the platform's strategy choice: when the traffic conversion rate and output efficiency coefficient of self-owned sharing hosts are high, the self-owned sharing model is optimal for the platform; when the traffic conversion rate and output efficiency coefficient of personal sharing hosts are high, the personal sharing model is optimal for the platform. The existing literature only considers the cooperation motives between online sharing platforms and sharers, and lacks the analysis of business model selection for online sharing platforms. By considering the traffic conversion rate, output efficiency, and draw ratio of the two types of sharers, this study enriches the existing research framework and provides important decision insights for the business model selection of intangible product sharing platforms such as live sharing platforms and knowledge sharing platforms.
Starting with the fundamental market structure of the individual sharing model for physical goods, this article first analyzes the effects of the rise of sharing markets on buyers, sellers, and sharing platforms. Additionally, it examines the best business model for platforms to use in the context of their involvement in the personal sharing market for physical goods. Additionally, this research builds a utility model for the personal sharing market for intangible goods and investigates the best pricing and platform operating techniques in light of intangible product sharing. Additionally, it examines the best economic model for the platform given its involvement in the self-owned sharing market for intangible goods. This study provides theoretical support and decision basis for the development of product pricing strategies and the choice of platform self-fulfillment strategies for sharing economy platforms facing different sharing products and different market contexts. The main work and innovation points of this paper are as follows:
1) First, the product usage strategies of consumers and pricing strategies of manufacturers in the personal sharing market for tangible products are studied, and the impact of the emergence of sharing markets on consumers, manufacturers, and sharing platforms is analyzed. Starting from the idle time of products, this study constructs an economic model by considering both the time allocation of two types of consumers using shared products and the impact of sharing markets on the participants in different periods, and investigates the impact of the emergence of personal sharing markets for tangible products on manufacturers' pricing strategies, consumers' product use time, consumer surplus and social welfare. The study's findings indicate that (1) personal sharing items are advantageous to all customers in a short-term ideal sharing market when producers fail to promptly change pricing. (2) Since manufacturers' earnings and consumer welfare rely on both sorts of customers in the market, producers in an ideal sharing market are likely to raise prices over time. (3) Depending on the scale of the platform's draws and the distribution of the two categories of customers, manufacturers' earnings, consumer surplus, and social welfare may not increase when transaction costs and draw fees are taken into account. The existing literature treats sharing markets only as a simple complement to traditional markets, ignoring the time allocation to the product in the sharing process and the impact on the participants. By effectively improving the existing research framework by considering the time-of-use feature of tangible products, this study provides important new managerial insights into consumers' time-of-use decisions, manufacturers' product pricing strategies, and platform draw decisions in individual sharing markets for tangible products.
2) Second, the optimal operating strategy of platforms involved in the self-owned sharing market of tangible products considering product cost and consumer structure is studied, and the optimal business model choice for sharing platforms is analyzed and derived. This study builds an economic model by taking into account both the proportion of two types of consumers in the market and the cost of the product. It then examines the best business model selection strategy for the sharing platform with the aim of maximizing the platform's profit. The study starts from the underlying market structure, i.e., the fully self-owned sharing model. The findings indicate that (1) the totally self-owned sharing model is the best course of action for the platform when the share of high-type customers is sufficiently high. (2) The optimal mode for the sharing platform depends on the cost of self-owned products when the proportion of high-type consumers is moderate, i.e., when the number of both types of consumers is equal. The individual sharing model is the best option for the platform when the cost of self-owned products is low or high. (3) When the percentage of high-type consumers is low, the best business model for the sharing platform depends on the price of self-supporting goods: when the price of self-supporting goods is high or low, adopting the partial self-supporting model is the best course of action for the platform; when the price of self-supporting goods is moderate, adopting the full self-supporting sharing model is the best course of action for the platform. best course of action. When platforms accept self-owned goods, the current literature overlooks the variety and complexity of business model options. This study offers crucial guidance for the selection of the best business models for sharing platforms when confronted with various market structures and product prices by taking into account the features of the fraction of tangible product sharing platforms that supply self-owned items.
3) Then, the platform optimal pricing strategy and online dynamic review management strategy in the personal sharing market of intangible products are investigated. This study builds an economic model by taking into account the fair price under the influence of social preferences and the negative utility produced by consumers' deviation from the fair price, starting from the underlying market structure, i.e., the subscription pricing model. We then collect data pertaining to the Douyu platform to study the optimal pricing strategy and operation strategy of the intangible product sharing platform with the goal of maximizing platform profit. The findings indicate that: (1) The operating costs of the platform and the social preference coefficient of the consumer group both affect the sharing platform's optimal pricing strategy. When the operating costs of the platform are relatively low and the social preference coefficient of the consumer group is relatively high, the reward pricing model is the best option. (2) The profit of the sharing platform improves positively as the number of dynamic comments shared online increases; conversely, when the number of dynamic comments shared online climbs too much, the profit of the sharing platform increases positively as well. When there are too many dynamic remarks made during online sharing, the profit of the platform will be pushed out. (3) Consumers' utility jointly depends on the base utility of online sharing, the utility of online interaction, the negative utility of deviation from fair price and the size of network utility. The existing literature only considers people's motivation to share online live, ignoring how online live sharing platforms develop their pricing strategies. By introducing reward pricing, a postpaid strategy, into intangible product sharing, this study effectively addresses the pricing challenges of intangible product sharing and provides important management insights for intangible product sharing platforms to develop pricing strategies and operational strategies.
4) Finally, in order to choose the best business model for the sharing platform, the study is done on the platform's ideal operating strategy taking into account the sharing quality, traffic conversion rate, and output efficiency in the self-owned sharing market of intangible items. This study constructs an economic model from the underlying market structure, i.e., the fully self-owned sharing model, by considering the sharing quality, traffic conversion rate, and output efficiency of both self-owned and personal sharing anchors, and investigates the optimal business model selection strategy for online sharing live streaming platforms with the goal of maximizing platform profits. The results of the study show that: (1) depending on the magnitude of the draw ratio, the sharing platform implements a completely self-owned sharing model. Additionally, the threshold of platform disadvantage is larger when the fixed cost of self-owned sharing anchors is higher; it is lower when the live quality and traffic conversion rate of self-owned sharing anchors. (2) The sharing platform fully adopts individual sharing model depends on the quality of individual live sharing. (3) The platform also adopts mixed model depends on the difference of reward and quality of both types of sharers. (4) The effort level of sharers will affect the platform's strategy choice: when the traffic conversion rate and output efficiency coefficient of self-owned sharing hosts are high, the self-owned sharing model is optimal for the platform; when the traffic conversion rate and output efficiency coefficient of personal sharing hosts are high, the personal sharing model is optimal for the platform. The existing literature only considers the cooperation motives between online sharing platforms and sharers, and lacks the analysis of business model selection for online sharing platforms. By considering the traffic conversion rate, output efficiency, and draw ratio of the two types of sharers, this study enriches the existing research framework and provides important decision insights for the business model selection of intangible product sharing platforms such as live sharing platforms and knowledge sharing platforms.
- Sharing economy, personal sharing model, platform self-operated model, pricing strategy, business model