Discount pricing in word-of-mouth marketing: An optimal control approach

作者：Li, Pengdeng; Yang, Xiaofan; Wu, Yingbo^*; He, Weiyi; Zhao, Pengpeng

来源：Physica A: Statistical Mechanics and Its Applications , 2018, 505: 512-522.

DOI：10.1016/j.physa.2018.03.062

• Word-of-mouth marketing
• Discount strategy
• Dynamic model
• Optimal expected net profit
• Optimal control
• Optimality system

This paper addresses the discount pricing in word-of-mouth (WOM) marketing. First, a dynamic model capturing WOM spreading processes is suggested. Second, the problem of finding an optimal discount strategy boils down to an optimal control problem. Third the existence of an optimal control for the control problem is proved, and an optimality system for finding an optimal control is presented. Thereby, the dynamic discount strategy associated with the optimal control is recommended. Some examples of the optimal control are given. Finally, the influence of different factors on the optimal expected net profit is examined.

• 出版日期2018-9-1
• 单位重庆大学