Optimal incentive timing strategies for product marketing on social networks
نویسندگان
چکیده
We consider the problem of devising incentive strategies for viral marketing of a product. In particular, we assume that the seller can influence penetration of the product by offering two incentive programs: a) direct incentives to potential buyers (influence) and b) referral rewards for customers who influence potential buyers to make the purchase (exploit connections). The problem is to determine the optimal timing of these programs over a finite time horizon. In contrast to algorithmic perspective popular in the literature, we take a mean-field approach and formulate the problem as a continuous-time deterministic optimal control problem. We show that the optimal strategy for the seller has a simple structure and can take both forms, namely, influence-andexploit and exploit-and-influence. We also show that in some cases it may optimal for the seller to deploy incentive programs mostly for low degree nodes. We support our theoretical results through numerical studies and provide practical insights by analyzing various scenarios.
منابع مشابه
Optimal Mix of Incentive Strategies for Product Marketing on Social Networks
We consider the problem of devising incentive strategies for viral marketing of a product. In particular, we assume that the seller can influence penetration of the product by offering two incentive programs: a) direct incentives to potential buyers (influence) and b) referral rewards for customers who influence potential buyers to make the purchase (exploit connections). The problem is to dete...
متن کاملDesigning a Strategic Business Model for Marketing Sports Products on Social Networks
The purpose of this study was to design a model of business strategies for marketing sports products on social networks. The statistical sample of this study consisted of 20 experts (university faculty members, employment and entrepreneurship consultants, and sports market consultants and sports business managers). Sampling was purposeful and snowballs and continued until the interviews reached...
متن کاملDilemma in two game structures for a closed-loop supply chain under the influence of government incentives
The government organizations grant incentives to promote green product consumption, improve green product quality, boost remanufacturing activities, etc. through various policies. The objective of this study is to highlight pros and cons of two incentive policies, namely (1) incentive on manufacturer’s R&D investment and (2) direct incentive to consumer based on greening level of the product on...
متن کاملOptimal Strategies of Increasing Business Alignment, in Social Security Organization, with Quality Function Deployment (QFD) Approach
Considering the importance of the concept of strategic alignment of information technology (IT) in today economic organizations, this study attempted to extract the organization's IT strategies in order to increase the degree of strategic alignment and consequently the optimal strategies in the field of marketing and service delivery for social security organization. Using QFD technique and hie...
متن کاملIntertwined Viral Marketing through Online Social Networks
Traditional viral marketing problems aim at selecting a subset of seed users for one single product to maximize its awareness in social networks. However, in real scenarios, multiple products can be promoted in social networks at the same time. At the product level, the relationships among these products can be quite intertwined, e.g., competing, complementary and independent. In this paper, we...
متن کامل