scholarly journals Video Platforms’ Value-Added Service Investments and Pricing Strategies for Advertisers

2021 ◽  
Vol 13 (24) ◽  
pp. 13701
Author(s):  
Gang Liu ◽  
Fengyue An

Using a game-theoretical approach, this paper develops a duopoly model and examines value-added service (VAS) investments and pricing strategies on video platforms with opposite inter-group network externalities between two groups. We consider two scenarios with VAS investment, namely, a single platform investing in VASs for advertisers (S-Model) and both platforms investing in VASs for advertisers (B-Model). We found the following: (i) In the S-Model, the investing platform’s VAS level remains maximum when the marginal investing cost is low; otherwise, it decreases with the cost. Investing and non-investing platforms’ advertising prices are unaffected by the marginal investing cost if the cost is low; otherwise, the prices decrease and increase with the cost, respectively. Furthermore, the investing platform’s advertising price is higher than the non-investing platform’s. (ii) In the B-Model, the two platforms’ VAS levels remain maximum if the marginal investing cost is low; otherwise, they decrease with the cost. The two platforms’ advertising prices are equal and irrelevant to the marginal investing cost. (iii) The investing platform’s VAS level in the S-Model is higher than or the same as that in the B-Model and the investing platform’s advertising price in the S-Model is higher than that in the B-Model. (iv) Compared to the scenario without VAS investment, the investing platform’s advertising price is higher in the S-Model, but the same in the B-Model.

2021 ◽  
Vol 13 (19) ◽  
pp. 10597
Author(s):  
Yu Zhang ◽  
Nan Liu

The Internet of Things (IoT) technology-based tracking system can reduce freight loss/damage during delivery, thereby avoiding wasting social resources. In this study, we address the issue of whether an E-retailer with a logistics arm should provide high-traceability logistics value-added service (based on IoT technology) in two customer segments and analyze their pricing decision. We found that companies always adopt IoT when equipment operation cost is low and not when the cost is high. Otherwise, the optimal IoT adoption strategy for a company depends on multiple factors, for example, the internal operation efficiency of a company. Providing high-traceability service as one kind of public service does not necessarily optimize social welfare even if the overall delivery failure is reduced. The customers’ preference for traceability significantly affects the company’s decision. Hence, we suggest that the company should implement a comprehensive investigation before launching a specific strategy.


IEEE Access ◽  
2019 ◽  
Vol 7 ◽  
pp. 98340-98355 ◽  
Author(s):  
Chuan Zhang ◽  
Hui-Min Ma ◽  
Min Xiao ◽  
Yu-Xin Tian ◽  
Ling-Wei Fan

2021 ◽  
Vol 7 (5) ◽  
pp. 1829-1841
Author(s):  
Deng Zhenghua ◽  
Hu Xiao

Objectives: This paper constructs an analytic model for optimal pricing in which the interrelationship between the tobacco equipment and the optional value-added service supplied by tobacco equipment manufacturers are effectively depicted, and derives the closed-form solutions of the optimal prices, which has previously been considered analytically intractable in the bundling problem of pricing two goods. The research reveals that when the marginal cost of the optional value-added service is 0 and the valuation of the service for tobacco manufacturing enterprises is relatively low, it is advisable to adopt pure bundling pricing strategy; when the marginal cost of the service is 0 but the valuation of the service is relatively high, it is advisable to adopt separate pricing strategy; when the marginal cost of the service is greater than 0, separate pricing strategy is always optimal. And it is interesting that, under separate pricing strategy, the higher valuation of the tobacco equipment leads to lower price for the service; the higher marginal cost of the service leads to higher price for the service, but lower price for the tobacco equipment. This paper also proves that there are only two basic pricing strategies for tobacco equipment manufacturers: pure bundling pricing and separate pricing of the tobacco equipment and service.


2012 ◽  
Vol 4 (4) ◽  
pp. 21-33
Author(s):  
K. P. Hewagamage ◽  
W.M.A.S.B. Wickramasinghe ◽  
A. De S. Jayatilaka

In this paper, the authors present work that was carried out to develop an m-learning extension to a Moodle based VLE at the University of Colombo School of Computing (UCSC) and its initial evaluation. They believed this new development could bring a value added service to learners and describe how mobile browsing, mobile applications and Short Message Service (SMS) were used to access learning resources and activities to interact with other users who were facilitating or following on-line courses. However, in their investigation, the authors discovered that m-learning cannot be promoted as a value added service for the current e-Learning based framework. Learners do not receive a significant benefit compared to the cost they incur to interact with the learning service. Both pedagogy and technical infrastructure must be considered together, not as an extension of existing services but to provide a new learning service for m-learning.


2019 ◽  
Vol 10 (1) ◽  
pp. 1-27
Author(s):  
Aniek Wijayanti

Business Process Analysis can be used to eliminate or reduce a waste cost caused by non value added activities that exist in a process. This research aims at evaluating activities carried out in the natural material procurement process in the PT XYZ, calculating the effectiveness of the process cycle, finding a way to improve the process management, and calculating the cost reduction that can achieved by activity management. A case study was the approach of this research. The researcher obtained research data throughout deep interviews with the staff who directly involved in the process, observation, and documentation of natural material procurement. The result of this study show that the effectiveness of the process cycle of natural material procurement in the factory reached as much as 87,1% for the sand material and 72% for the crushed stone. This indicates that the process still carry activities with no added value and still contain ineffective costs. Through the Business Process Mechanism, these non value added activities can be managed so that the process cycle becomes more efficient and cost effectiveness is achieved. The result of the effective cycle calculation after the management activities implementation is 100%. This means that the cost of natural material procurement process has become effective. The result of calculation of the estimated cost reduction as a result of management activity is as much as Rp249.026.635,90 per year.


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