Dynamic Maintenance Strategy for Word-of-Mouth Marketing
After-sale service is an integrable part of marketing activities. The after-sale service experience of a consumer can be measured by the dynamic maintenance (DM) strategy used by the merchant, i.e., the instantaneous fractions of the maintenance cost paid by the merchant in the total maintenance cos...
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doaj-f0fc3e60bc3e43fabbb4c54c708e33582021-03-30T02:18:22ZengIEEEIEEE Access2169-35362020-01-01812649612650310.1109/ACCESS.2020.30071579133406Dynamic Maintenance Strategy for Word-of-Mouth MarketingHong Peng0Kaifan Huang1https://orcid.org/0000-0001-8998-8083Lu-Xing Yang2https://orcid.org/0000-0002-9229-5787Xiaofan Yang3https://orcid.org/0000-0001-6931-2692Yuan Yan Tang4School of Big Data and Software Engineering, Chongqing University, Chongqing, ChinaSchool of Big Data and Software Engineering, Chongqing University, Chongqing, ChinaSchool of Information Technology, Deakin University, Melbourne, VIC, AustraliaSchool of Big Data and Software Engineering, Chongqing University, Chongqing, ChinaDepartment of Computer and Information Science, University of Macau, Macau, ChinaAfter-sale service is an integrable part of marketing activities. The after-sale service experience of a consumer can be measured by the dynamic maintenance (DM) strategy used by the merchant, i.e., the instantaneous fractions of the maintenance cost paid by the merchant in the total maintenance cost at all time. This paper aims to develop an optimal DM strategy for a word-of-mouth (WOM) marketing campaign. First, we propose an individual-based WOM propagation model in which the effect of the DM strategy is accounted for. Second, we convert the original problem into an optimal control problem, where the objective functional stands for the expected marketing profit, each optimal control stands for an optimal DM strategy. Third, we derive the optimality system for the optimal control problem. By solving the optimality system, we get a potential optimal control. Next, through comparative experiments we conclude that the DM strategy associated with the potential optimal control outperforms most DM strategies in terms of the expected marketing profit. Therefore, we recommend this potential DM strategy. Finally, we examine the effect of some factors on the expected marketing profit for the potential DM strategy. Our findings help to enhance the marketing profit of a WOM marketing campaign.https://ieeexplore.ieee.org/document/9133406/WOM marketingmarketing profitdynamic maintenance strategyWOM propagation modeloptimal control model |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Hong Peng Kaifan Huang Lu-Xing Yang Xiaofan Yang Yuan Yan Tang |
spellingShingle |
Hong Peng Kaifan Huang Lu-Xing Yang Xiaofan Yang Yuan Yan Tang Dynamic Maintenance Strategy for Word-of-Mouth Marketing IEEE Access WOM marketing marketing profit dynamic maintenance strategy WOM propagation model optimal control model |
author_facet |
Hong Peng Kaifan Huang Lu-Xing Yang Xiaofan Yang Yuan Yan Tang |
author_sort |
Hong Peng |
title |
Dynamic Maintenance Strategy for Word-of-Mouth Marketing |
title_short |
Dynamic Maintenance Strategy for Word-of-Mouth Marketing |
title_full |
Dynamic Maintenance Strategy for Word-of-Mouth Marketing |
title_fullStr |
Dynamic Maintenance Strategy for Word-of-Mouth Marketing |
title_full_unstemmed |
Dynamic Maintenance Strategy for Word-of-Mouth Marketing |
title_sort |
dynamic maintenance strategy for word-of-mouth marketing |
publisher |
IEEE |
series |
IEEE Access |
issn |
2169-3536 |
publishDate |
2020-01-01 |
description |
After-sale service is an integrable part of marketing activities. The after-sale service experience of a consumer can be measured by the dynamic maintenance (DM) strategy used by the merchant, i.e., the instantaneous fractions of the maintenance cost paid by the merchant in the total maintenance cost at all time. This paper aims to develop an optimal DM strategy for a word-of-mouth (WOM) marketing campaign. First, we propose an individual-based WOM propagation model in which the effect of the DM strategy is accounted for. Second, we convert the original problem into an optimal control problem, where the objective functional stands for the expected marketing profit, each optimal control stands for an optimal DM strategy. Third, we derive the optimality system for the optimal control problem. By solving the optimality system, we get a potential optimal control. Next, through comparative experiments we conclude that the DM strategy associated with the potential optimal control outperforms most DM strategies in terms of the expected marketing profit. Therefore, we recommend this potential DM strategy. Finally, we examine the effect of some factors on the expected marketing profit for the potential DM strategy. Our findings help to enhance the marketing profit of a WOM marketing campaign. |
topic |
WOM marketing marketing profit dynamic maintenance strategy WOM propagation model optimal control model |
url |
https://ieeexplore.ieee.org/document/9133406/ |
work_keys_str_mv |
AT hongpeng dynamicmaintenancestrategyforwordofmouthmarketing AT kaifanhuang dynamicmaintenancestrategyforwordofmouthmarketing AT luxingyang dynamicmaintenancestrategyforwordofmouthmarketing AT xiaofanyang dynamicmaintenancestrategyforwordofmouthmarketing AT yuanyantang dynamicmaintenancestrategyforwordofmouthmarketing |
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1724185473358757888 |