Volume 56, Number 3, May-June 2022
|Page(s)||1203 - 1221|
|Published online||17 May 2022|
Optimal marketing channel and strategy in social commerce
Department of Electronic Business, South China University of Technology, Guangzhou Higher Education Mega Center, Guangzhou 510006, P.R. China
2 Institute of Digital Business and Intelligent Logistics, South China University of Technology, Guangzhou Higher Education Mega Center, Guangzhou 510006, P.R. China
3 School of Informatics, University of Edinburgh, Edinburgh EH8 9LE, UK
* Corresponding author: firstname.lastname@example.org
Accepted: 17 April 2022
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 the consumer utility, we construct decision-making models of e-commerce enterprises under the traditional e-commerce platform (TECP) and two kinds of social commerce marketing channels involving “e-commerce platform + social” (ECPS) and “social media + business’ (SMB). Then, we obtain the optimal strategy of e-commerce enterprises for each channel by using the Karush–Kuhn–Tucker (KKT) conditions, and verify the effectiveness of the corollaries by numerical simulation. Results find that social commerce marketing channels (ECPS and SMB) are not necessarily better than TECP. For e-commerce enterprises with low consumer base size and low product added-value, the TECP channel offers the largest profit. Besides, SMB is the preferred marketing channel for most e-commerce enterprises.
Mathematics Subject Classification: 90B60 / 90C30
Key words: Social commerce / marketing channel / decision-making model / KKT conditions / nonlinear programming
© The authors. Published by EDP Sciences, ROADEF, SMAI 2022
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