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: Ying Yu, Jiaomin Liu, Jiadong Ren, Qian Wang, Cuiyi Xiao
Format: Article
Language:English
Published: Wiley 2021-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2021/4237712
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author Ying Yu
Jiaomin Liu
Jiadong Ren
Qian Wang
Cuiyi Xiao
author_facet Ying Yu
Jiaomin Liu
Jiadong Ren
Qian Wang
Cuiyi Xiao
author_sort Ying Yu
collection DOAJ
description 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.
format Article
id doaj-art-72db2199fb364c3f8dac49a897b07df6
institution Kabale University
issn 1099-0526
language English
publishDate 2021-01-01
publisher Wiley
record_format Article
series Complexity
spelling doaj-art-72db2199fb364c3f8dac49a897b07df62025-08-20T03:33:49ZengWileyComplexity1099-05262021-01-01202110.1155/2021/4237712Maximize Expected Profits by Dynamic After-Sales Service Investment Strategy Based on Word-of-Mouth Marketing in Social Network ShoppingYing Yu0Jiaomin Liu1Jiadong Ren2Qian Wang3Cuiyi Xiao4College of Information Science and EngineeringCollege of Information Science and EngineeringCollege of Information Science and EngineeringCollege of Information Science and EngineeringCollege of Mathematics and Information TechnologyThis 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.http://dx.doi.org/10.1155/2021/4237712
spellingShingle Ying Yu
Jiaomin Liu
Jiadong Ren
Qian Wang
Cuiyi Xiao
Maximize Expected Profits by Dynamic After-Sales Service Investment Strategy Based on Word-of-Mouth Marketing in Social Network Shopping
Complexity
title Maximize Expected Profits by Dynamic After-Sales Service Investment Strategy Based on Word-of-Mouth Marketing in Social Network Shopping
title_full Maximize Expected Profits by Dynamic After-Sales Service Investment Strategy Based on Word-of-Mouth Marketing in Social Network Shopping
title_fullStr Maximize Expected Profits by Dynamic After-Sales Service Investment Strategy Based on Word-of-Mouth Marketing in Social Network Shopping
title_full_unstemmed Maximize Expected Profits by Dynamic After-Sales Service Investment Strategy Based on Word-of-Mouth Marketing in Social Network Shopping
title_short Maximize Expected Profits by Dynamic After-Sales Service Investment Strategy Based on Word-of-Mouth Marketing in Social Network Shopping
title_sort maximize expected profits by dynamic after sales service investment strategy based on word of mouth marketing in social network shopping
url http://dx.doi.org/10.1155/2021/4237712
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AT jiadongren maximizeexpectedprofitsbydynamicaftersalesserviceinvestmentstrategybasedonwordofmouthmarketinginsocialnetworkshopping
AT qianwang maximizeexpectedprofitsbydynamicaftersalesserviceinvestmentstrategybasedonwordofmouthmarketinginsocialnetworkshopping
AT cuiyixiao maximizeexpectedprofitsbydynamicaftersalesserviceinvestmentstrategybasedonwordofmouthmarketinginsocialnetworkshopping