The optimal pricing model of online knowledge payment goods in C2C sharing economy. Issue 1 (1st April 2021)

• Record Type: Journal Article
• Authors: Qu, Yi; Lin, Zhengkui; Zhang, Xiaonan
• Is Part Of: Kybernetes. Volume 51:Issue 1(2022)
• Page Start: 31
• Page End: 51
• Publication Date: 2021-04-01
• Subjects: Decision-making -- Game theory -- Mathematical modeling -- Knowledge payment -- Pricing model -- Price strategy -- Utility function; Cybernetics -- Periodicals; Systems engineering -- Periodicals; 003.505
• DOI: 10.1108/K-11-2020-0756
• Languages: English
• ISSNs: 0368-492X

Abstract

Abstract : Purpose: The purpose of this paper is to research the price strategies of online knowledge payment product by considering network externality in the C2C sharing economy. Design/methodology/approach: Considering the characteristics of online knowledge goods and the social network externality of consumers, this study establishes a consumer utility function. On this basis, a multistage game pricing model of online knowledge products is established based on three kinds of network price strategies under a completely competitive market structure. It also analyzes the influence of consumer social network structure and consumer utility on online knowledge product pricing and producer profit, as well as the influence of consumer quantity and discount rate on pricing strategy. Findings: The consumer social network and consumer utility affect the pricing of online knowledge product under different price strategies. In the growth period of the platform, adopting the price discrimination strategy, the profit of producers is significantly higher than that of other price strategies, and producers should choose effective price strategies for reasonable pricing in combination with their own sales objectives. Originality/value: This study enriches the literature on the pricing model of online knowledge payment product and owns a practical significance to guide the knowledge producers' marketing strategies to increase profit.