Research On The Operation Mechanism And Inventory Strategy Of The Network Trial Marketing Model

With the development of e-commerce,the disadvantages of the traditional online shopping are constantly exposed.Consumers can not perceive the product in advance,and they can judge the products only through its description or buyers.Consumers are in inferior position with the information of products and cause their hesitation of purchasing,the existing return strategy is no longer effective.So that,the retailer's service strategy continues to emerge,new network trial marketing model came into being.In the new model,consumers can buy products in the first free trial and they can share the trial experience online,so that more potential consumers can get more product information and no longer subject to the restrictions of time and space.In fact,the actual product trial experience and product information sharing is more conducive to the reasonable choice of products,improve the actual purchase rate and reduce the amount of return.Therefore,it is of great practical significance to study the operation mechanism of the network trial marketing and its inventory strategy,which can provide more support to the theory reference for the decision making.By combing the theories related to the trial of network marketing,this article choose try before you buy and have a free trial as two examples,considering the factors which may influence consumer's decision behavior and making a detailed analysis and research to its operation mechanism and inventory strategy,respectively.Main contents include:(1)In try before you buy mode,we quantify the economic value of product information and consider the customer's loss averse characteristic to construct the information value function and loss aversion utility function,then introduce them into the trial model and analyze the impact of each factor on retailer's profits.Finally,we compare it to the traditional return model.The results show that the initial value of the product and the amount of product information play an important role in the customer's behavior of the three stages in the game and the retailer's optimal profit.When the amount of initial value or product information is higher than a certain value,try before you buy mode is better than the return mode.(2)In the free trial mode,we establish a free trial model to analyze the influence of Shokeys' effort level when they write a trial report on the retailer incentive mechanism,and compare it with group buying model from qualitative and quantitative aspects.Research shows that:the greater efforts the Shokeys give,the more potential consumers will purchase and bring more profits for the retailers.(3)First of all,a model of the EOQ inventory control is established according to the try before you buy mode.The results show that if the more actual purchase rate,the shorter product sales cycle,the more quantity of trial products offered by retailers,the more order quantity retailers can get before the sales cycle.Secondly,the newsboy model is set up by a free trial mode.The results show that the product of the purchase price is higher,the higher selling price,the market demand of products is smaller,the greater cost the retailers need to bear.