How Does the Parallel Strategy of Platform Pricing and Service Quality Affect Platform User Scale:Based on the Case Study of Meituan Takeaway
In the process of growth and expansion of the internet platform,in order to obtain a larger market scale,the platform can use price competition strategies and non-price competition strategies to attract users.Based on the two-sided market and platform theory,this paper constructs a Hotelling duopoly competi-tion model that conforms to the characteristics of the two-sided market and the reality of the internet platform.To study the impacts of platform service quality strategy and platform price strategy on user scale in the case of two-sided users'multi-homing.Then using Meituan Takeaway data,we empirically tested the impact of the im-plementation of price strategies and service quality strategies on the scale of online platforms.Research find-ings are:(a)compared to the service quality of the platform,consumers are more sensitive to the pricing level of platform,and(b)the low prices set by platform companies are conducive to expanding the scale of plat-forms.The platform can attract more consumers and gain a larger market scale by improving its own services or strengthening the management of the merchants on the platform.In addition,the interaction effect between platform service quality and platform pricing level shows that internet platform enterprises should comprehen-sively consider price strategy and service quality strategy when formulating competitive strategies.
price strategyservice quality strategyplatform competitionMeituan Takeawayplatform user scale
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