incentivizeWoM {WordOfMouth} | R Documentation |
Calculates the impact of incentivizing WoM communication
Description
Calculates the impact of incentivizing WoM communication. Given a start forward probability and an expected end forward, probability this function calculates changes in demand, consumer surplus, profit, cost for incentivizing and economic welfare for i) keeping the optimal price for the start forward probability or ii) setting the optimized price for the expected forward probability.
Usage
incentivizeWoM(campaign, expProb, rewardCost = 0, keepStartPrice = FALSE)
Arguments
campaign |
Word-of-Mouth campaign as instance of class |
expProb |
Expected forward probability when incentivizing WoM. |
rewardCost |
Cost per consumer acquired through the incentivization strategy. |
keepStartPrice |
Logical value indicating whether or not (default) the optimized price for the start forward probability will also used for the expected forward probability. |
Value
Data frame containing the profit-maximizing price, the resulting demand, profit, consumer surplus and economic welfare for the start WoM intensity and the expected WoM intensity.
Author(s)
Michael Scholz michael.scholz@th-deg.de
Thomas Woehner Thomas.Woehner@eah-jena.de
Ralf Peters ralf.peters@wiwi.uni-halle.de
See Also
computeOptimalPrice
computeProfit
computeConsumerSurplus
Examples
network <- new("WoMNetwork", size = 1000, avgConnections = 5)
campaign <- new("WoMCampaign", network = network, seedingSize = 10, forwardProbability = 0.2)
incentivization <- incentivizeWoM(campaign = campaign, expProb = 0.25, rewardCost = 0.05)
print(incentivization)