Optimal marketing channel and strategy in social commerce

This paper aims to explore the optimal marketing channel of e-commerce enterprises with various consumer base size and product added-value in social commerce. By characterizing utility, we construct decision-making models under traditional platform (TECP) two kinds commerce channels involving “e-commerce + social” (ECPS) “social media business’ (SMB). Then, obtain strategy for each by using Karush–Kuhn–Tucker (KKT) conditions, verify effectiveness corollaries numerical simulation. Results find that (ECPS SMB) are not necessarily better than TECP. For low added-value, TECP offers largest profit. Besides, SMB is preferred most enterprises.