yang-dynamicdiscount-2019.pdf (3.5 MB)
Dynamic discount pricing in competitive marketing
journal contribution
posted on 2019-01-01, 00:00 authored by J Chen, Luxing YangLuxing Yang, D W Huang, X Yang, Y Y Tang© 2013 IEEE. Discount is a frequently used marketing tool. This paper is devoted to designing an effective dynamic discount pricing (DDP) strategy in competitive marketing. First, we introduce a competitive word-of-mouth (WOM) propagation model with DDP mechanism. On this basis, we model the original problem as an optimal control problem. Next, we derive the optimality system for the optimal control problem and, thereby, propose the concept of competitive DDP strategy. Finally, through comparative experiments, we find that the profit of a competitive DDP strategy is satisfactory. Our findings contribute to maximizing the marketing profit in the presence of commercial competitors.
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Journal
IEEE AccessVolume
7Pagination
145340 - 145347Publisher
IEEELocation
Piscataway, N.J.Publisher DOI
Link to full text
ISSN
2169-3536eISSN
2169-3536Language
engPublication classification
C1.1 Refereed article in a scholarly journalUsage metrics
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No categories selectedKeywords
Marketing managementprofit maximizationdiscount pricingword-of-mouthpropagationoptimal controloptimality systemScience & TechnologyTechnologyComputer Science, Information SystemsEngineering, Electrical & ElectronicTelecommunicationsComputer ScienceEngineeringword-of-mouth propagationOPTIMAL-CONTROL MODELSINFORMATION
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