Dynamic Pricing in B2C Based on Online Product Reviews

被引：6
作者：
Wang, Hongwei [1 ]
Zhang, Wei [1 ]
Zheng, Lijuan [1 ]
机构：
[1] Tongji Univ, Sch Econ & Management, Shanghai 200092, Peoples R China
来源：
PEEA 2011 | 2011年 / 23卷
关键词：
dynamic pricing; online product review; B2C; game theory; MODEL;
D O I：
10.1016/j.proeng.2011.11.2501
中图分类号：
TM [电工技术]; TN [电子技术、通信技术];
学科分类号：
0808 ; 0809 ;
摘要：
To study how e-tailors should fix the price to influence word-of-mouth to maximize profits, this paper comes up with a dynamic pricing model based on online product reviews. Customers base consumption decisions on the principle of utility maximization. A lower price can lead to more positive reviews and improve the utility, but it may reduce the profit. The model gives the optimal pricing strategy for the e-tailor in a duopoly market competing with an offline retailor. The analytical results show with the increase of online reviews, the optimal pricing of the e-tailor increases and the growth rate declines. (C) 2011 Published by Elsevier Ltd. Selection and/ or peer-review under responsibility of ICSS
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页数：6
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