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Chinese Journal of Management Science ›› 2023, Vol. 31 ›› Issue (2): 215-225.doi: 10.16381/j.cnki.issn1003-207x.2020.0972

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Study on Behavior-based Pricing Strategy and Contract Model for Platforms with Service Differentiation

MA Dong-sheng1, 2, SONG Hua-ming2, ZHAO Jin-xiao1, ZHU Yan-ru1   

  1. 1. School of Business, Jiangsu Ocean University, Lianyungang 222005, China;2. School of Economics and Management, Nanjing University of Science & Technology, Nanjing 210094, China
  • Received:2020-05-26 Revised:2020-12-29 Online:2023-02-20 Published:2023-02-28
  • Contact: 宋华明 E-mail:songhuamingedu@sina.com

Abstract: It is common that customers are more willing to consume on platforms matching their service preferences, which makes it difficult for platforms to attract new customers. Behavior-based pricing (BBP) is used to compete for new customers and market shares. However, cooperation between platforms and collaborators are affected by intensified price competition. In this context, dual challenges of BBP strategy and contract model are faced by competing platforms. Firstly, to solve this problem, game theory is used to construct a two-period dynamic pricing model. Secondly, platform's optimal BBP strategy and contract model are obtained through the comparative analysis of platforms’ profits, prices, and demands under different scenarios. Finally, two situations are analyzed where platforms share customer information with collaborators and collaborators can choose the contract model. The main findings are as follows: (1) platforms’ pricing decision are affected by two key factors—relative service efficiency and operating type, and specific conditions are given; (2) Customer information should be shared with collaborators,which can increase platforms’ profits and weaken internal competition. (3) Long-term contracts are the best choice for collaborators to cooperate with resell-channel platforms. These conclusions provide management inspiration for platforms to make scientific BBP and contract model choices. In addition, it also shows that BBP helps to coordinate platforms’ internal and external competition.

Key words: behavior-based pricing; platform; dynamic pricing; service differentiation

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