Analysis of Marketing Channel Competition under Network Externality

• 발행기관: 한국산업경영시스템학회
• 저자명: Hyung-Rae Cho(조형래) Minho Rhee(이민호) Sang-Gyu Lim(임상규)
• 간행물 정보: 『산업경영시스템학회지』제40권 제1호, 105~113쪽, 전체 9쪽
• 주제분류: 경제경영 > 경영학
• 파일형태: PDF
• 발행일자: 2017.03.30

영문 초록

Network externality can be defined as the effect that one user of a good or service has on the value of that product to other people. When a network externality is present, the value of a product or service is dependent on the number of others using it. There exist asymmetries in network externalities between the online and traditional offline marketing channels. Technological capabilities such as interactivity and real-time communications enable the creation of virtual communities. These user communities generate significant direct as well as indirect network externalities by creating added value through user ratings, reviews and feedback, which contributes to eliminate consumers’ concern for buying products without the experience of ‘touch and feel’. The offline channel offers much less scope for such community building, and consequently, almost no possibility for the creation of network externality. In this study, we analyze the effect of network externality on the competition between online and conventional offline marketing channels using game theory. To do this, we first set up a two-period game model to represent the competition between online and offline marketing channels under network externalities. Numerical analysis of the Nash equilibrium solutions of the game showed that the pricing strategies of online and offline channels heavily depend not only on the strength of network externality but on the relative efficiency of online channel. When the relative efficiency of online channel is high, the online channel can greatly benefit by the network externality. On the other hand, if the relative efficiency of online channel is low, the online channel may not benefit at all by the network externality.

목차

1. 서 론

2. 경쟁모형

3. Nash 균형해

4. 균형해 분석

5. 결 론

키워드

Network Externality Game Theory Two-period Model Nash Equilibrium Solution