Pricing And Ordering Decisions Under The Influence Of Internet Word Of Mouth

Along with the application and popularization of the Internet,consumer behavior and information communication have undergone a significant change.Online word-of-mouth(WOM)with faster spread and wider coverage,is the key factor that affects consumer purchasing decision.And WOM marketing has become one of the most important marketing strategy.For enterprises to carry out online WOM marketing,product pricing and ordering decision,as well as the profit will strongly depend on its effect.However,the spontaneity and uncertainty of word-of-mouth communication makes it impossible for enterprises to control the process of information dissemination.The effect of WOM marketing is often difficult to evaluate and predict.It is of great practical significance to study the influence of online WOM communication on pricing and ordering decision.As a channel for information dissemination,the impact of the social network structure of consumers and the location of the individual network structure on the communication of internet word-of-mouth has not been fully explored.Because of ignoring these factors,the mathematical model of information dissemination only considers the indifference of the uniform network,and it is difficult to accurately reflect the process and results of communication,and there are still great limitations in the analysis of such problems.Therefore,considering the influence of word-of-mouth communication,this paper analyzes the decision-making problem of product pricing by multi-agent modeling.With the help of the SIR propagation model,the people will be affected by the new information in real life,which will not pay attention to the original internet word-of-mouth,and join the forgetting rate function to describe the process that consumers lose interest and no longer spread.Then four indexes are used to evaluate the effect of word of mouth information in the social network of consumers,and to find the "opinion leader" in the information dissemination,that is,the node that affects the effect of the communication to the greatest extent.Taking into account the two sides of word of mouth information,we analyze the impact of positive word of mouth and negative word of mouth on pricing decisions respectively.Then we simulate the effect of word of mouth and solve the optimal pricing of enterprise products.Then we further analyze the impact of social relationship network and word-of-mouth information dissemination on the optimal decision-making and earnings of enterprises.By analyzing and comparing the simulation results,we verified the limitations of the mathematical models in the study of word of mouth.More importantly,multi-agent simulation results show that proximity centrality is the index node that maximizes propagation effect.Under the positive word of mouth,enterprises can enhance their social relations and enhance their acceptance of word of mouth information,so that they can improve their earnings.This research conclusion provides a way and direction for enterprises to formulate word-of-mouth communication strategies and product pricing decisions.