Maximize Expected Profits by Dynamic After-Sales Service Investment Strategy Based on Word-of-Mouth Marketing in Social Network Shopping
This paper discusses how word-of-mouth marketing affects the profits of product sales in social network-based shopping under good after-sales service. First, a new word-of-mouth communication model based on silent evaluation, positive evaluation, and negative evaluation is proposed. Second, we use t...
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| Main Authors: | , , , , |
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| Format: | article |
| Language: | EN |
| Published: |
Hindawi-Wiley
2021
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| Subjects: | |
| Online Access: | https://doaj.org/article/72db2199fb364c3f8dac49a897b07df6 |
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| Summary: | This paper discusses how word-of-mouth marketing affects the profits of product sales in social network-based shopping under good after-sales service. First, a new word-of-mouth communication model based on silent evaluation, positive evaluation, and negative evaluation is proposed. Second, we use the way of increasing after-sales service to achieve high praise and thereby maximize the expected profits. Thus, the proportion control problem of after-sales service investment is modeled as an optimal control problem. Third, the existence of optimal control is proved, and an optimal control strategy for dynamic proportion of after-sales service investment is proposed. Fourth, through data simulation of different real-world networks, it is verified that the expected profits under the dynamic after-sales service strategy is higher than that under any uniform control strategy. Finally, sensitivity analysis is performed to explore how different parameters affect the expected profits. |
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