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Article

Optimal Service Strategies of Online Platform Based on Purchase Behavior

by
Xudong Lin
1,
Tingyi Shi
2,*,
Hanyang Luo
1 and
Hao Zhu
2
1
Institute of Big Data Intelligent Management and Decision, College of Management, Shenzhen University, Shenzhen 518060, China
2
College of Management, Shenzhen University, Shenzhen 518060, China
*
Author to whom correspondence should be addressed.
Sustainability 2024, 16(19), 8545; https://doi.org/10.3390/su16198545 (registering DOI)
Submission received: 9 August 2024 / Revised: 19 September 2024 / Accepted: 24 September 2024 / Published: 30 September 2024

Abstract

In the rapidly evolving platform economy, online platforms have emerged as pivotal providers of digital services to sellers. The paper investigates how online platforms optimize service strategies based on consumers’ purchase behavior, influencing sellers’ pricing and social welfare. Using a two-period Hotelling model and a cooperative game framework, we discover that the optimal service strategies of a platform with data collecting capabilities are collaborating with two sellers to offer to extend services to new consumers in the second period, maximizing profits for all sellers and platform. Applying Shapley value analysis, we determine the platform’s equitable service charge strategies. When sellers adopt behavior-based pricing (BBP), the pricing escalates in the first period, and the platform’s optimal service strategies also enhance the pricing of sellers. However, in the second period, BBP intensifies competition, leading to generally lower pricing. Our findings suggest that optimal pricing in the second period for new consumers should increase with enhanced quality perception, which is provided by the platform’s digital services and heightened by consumers’ privacy concerns, while decreasing for regular consumers. Lastly, we offer policy recommendations, exploring optimal regulatory scenarios—limiting or not limiting data collection—to maximize social welfare or consumer surplus, and the Mathematica software is used to identify distinct optimal policy intervals.
Keywords: service strategy; behavior-based pricing (BBP); policy regulation; social welfare service strategy; behavior-based pricing (BBP); policy regulation; social welfare

Share and Cite

MDPI and ACS Style

Lin, X.; Shi, T.; Luo, H.; Zhu, H. Optimal Service Strategies of Online Platform Based on Purchase Behavior. Sustainability 2024, 16, 8545. https://doi.org/10.3390/su16198545

AMA Style

Lin X, Shi T, Luo H, Zhu H. Optimal Service Strategies of Online Platform Based on Purchase Behavior. Sustainability. 2024; 16(19):8545. https://doi.org/10.3390/su16198545

Chicago/Turabian Style

Lin, Xudong, Tingyi Shi, Hanyang Luo, and Hao Zhu. 2024. "Optimal Service Strategies of Online Platform Based on Purchase Behavior" Sustainability 16, no. 19: 8545. https://doi.org/10.3390/su16198545

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