Study On The Optimal Pricing Strategy For Social Commerce Considering Network Externalities

In the era of rapid development of the Internet economy and the increasing popularity of social media,consumers' purchase intentions are deeply affected by their social networks.The traditional e-commerce development model has gradually failed,and social e-commerce has emerged.Social e-commerce fully combines the advantages of social media and e-commerce,integrates "social" and "e-commerce",and integrates social factors such as attention,comment,and sharing into the process of e-commerce transactions.For consumers,social e-commerce reduces the cost of search and decision-making in the shopping process,enabling efficient shopping;For merchants,social e-commerce brings to the business Economy Profit by increasing user stickiness and transaction conversion rate.Research on social e-commerce has gradually attracted the attention of scholars,but current academic research is more concerned with its business model and user behavior,and there are few studies on the economic characteristics of social e-commerce.In addition,socializing Network externalities and first customer movers are the two key factors affecting consumers' purchasing decisions.Therefore,the pricing is different from traditional e-commerce pricing.If still follow the traditional static pricing model,it will affect the survival and development of enterprises.Therefore,further research on the optimal pricing strategy of social e-commerce is needed.This paper has conducted in-depth research on the socialized e-commerce optimal pricing strategy considering the externalities of the network.The main studies and contributions in this dissertation are as followings:(1)Constructed the optimal pricing model of socialized e-commerce with network externalities.After a detailed analysis of the basic model,consider the influencing factors of consumers' purchasing decisions in social e-commerce,and combine the model with the social network.In the consumer's utility function,not only the consumer's own consumption preference is fully considered,but also the influence of macro-micro network externality on consumer utility is considered,and then constructed the optimal pricing model of socialized e-commerce considering network externality.(2)Constructed the optimal pricing model of socialized e-commerce with first customer movers considering network externalities.Introducing the first customer mover mechanism into the optimal pricing model,adding the game process between the ordinary consumer and the first customer mover based on the original model,fully considering the impact of first customer movers on the consumption decisions of ordinary consumers.This process is very consistent with the actual situation in the social e-commerce,and the new model is solved and mathematical analysis.(3)A case study based on pricing model and analysis of pricing strategy selection were conducted.Setting three scenarios in the different network structure to analyze the choice of social e-commerce optimal pricing strategy.This paper summarized the value of network externality and the first customer mover,and also concluded the influence of consumer relationship network structure on the pricing strategy of merchants in social e-commerce through horizontal and vertical comparison.Through comparative analysis,not only obtained the general conclusions,but also provided decision basis for the selection of optimal pricing strategy for social e-commerce.This paper proposes a study of social e-commerce optimal pricing strategies considering network externalities,considering the influence of macro-micro network externalities,first customer movers and consumers' own factors on consumer purchasing strategy choices.It provides a reference method for the formulation of social e-commerce pricing strategy,and provides ideas and methods for future social e-commerce pricing research considering network externalities.