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How Online Reviews Interact with a Firm's Free Version Strategy
Information & Management ( IF 8.2 ) Pub Date : 2022-04-25 , DOI: 10.1016/j.im.2022.103662
Huanhuan Cao 1 , Jinhu Jiang 2 , Xianjun Geng 3
Affiliation  

This study developed a game-theory model to explore interactions between online reviews and free version strategies. Results show that a firm could have four strategies as a strategic tool to respond best to availability of online reviews depending on the relative strength of network effect, cannibalization effect, and dispersed effect. Moreover, when offering a free version is the best strategy both with and without online reviews, online reviews and the free version strategy could still be both complementary and substitutive. This result provides possible theoretical explanations for mixed empirical conclusions regarding whether online reviews complement or substitute free version strategies.



中文翻译:

在线评论如何与公司的免费版本策略相互作用

本研究开发了一个博弈论模型来探索在线评论和免费版本策略之间的相互作用。结果表明,根据网络效应、蚕食效应和分散效应的相对强度,公司可以有四种策略作为战略工具来最好地响应在线评论的可用性。此外,当提供免费版本是有和没有在线评论的最佳策略时,在线评论和免费版本策略仍然可以是互补和替代的。这一结果为关于在线评论是补充还是替代免费版本策略的混合经验结论提供了可能的理论解释。

更新日期:2022-04-25
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