TY - GEN
T1 - Revenue and reputation
T2 - 2012 50th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2012
AU - Chatterjee, Avhishek
AU - Ying, Lei
AU - Vishwanath, Sriram
PY - 2012/12/1
Y1 - 2012/12/1
N2 - Profit is a function of multiple variables, including demand, cost of a product and/or service and its price. A myopic approach to business that compromises quality for profit would cause customer dissatisfaction. Customer satisfaction has its effect on business' reputation through reviews on websites like Yelp, Amazon, eBay and thus affects profitability for a business. An additional factor that influences profitability is marketing the product/service, through advertising and promotional deals to attract customers. Overall, there is an intricate relationship that couples quality, reputation, demand and product-marketing, all of which should be driven towards maximizing profitability for a business. This paper formulates profit maximization problem as a static optimization problem, based on relationships among underlying variables and derives a dynamic decision policy from that. This formulation factors in variability caused by uncontrollable market factors. This paper presents a profit maximization scheme that is agnostic to the distribution of the market factors and proves its near-optimality. 1
AB - Profit is a function of multiple variables, including demand, cost of a product and/or service and its price. A myopic approach to business that compromises quality for profit would cause customer dissatisfaction. Customer satisfaction has its effect on business' reputation through reviews on websites like Yelp, Amazon, eBay and thus affects profitability for a business. An additional factor that influences profitability is marketing the product/service, through advertising and promotional deals to attract customers. Overall, there is an intricate relationship that couples quality, reputation, demand and product-marketing, all of which should be driven towards maximizing profitability for a business. This paper formulates profit maximization problem as a static optimization problem, based on relationships among underlying variables and derives a dynamic decision policy from that. This formulation factors in variability caused by uncontrollable market factors. This paper presents a profit maximization scheme that is agnostic to the distribution of the market factors and proves its near-optimality. 1
KW - Online reviews
KW - reputation
KW - utility optimization
UR - http://www.scopus.com/inward/record.url?scp=84875692761&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84875692761&partnerID=8YFLogxK
U2 - 10.1109/Allerton.2012.6483275
DO - 10.1109/Allerton.2012.6483275
M3 - Conference contribution
AN - SCOPUS:84875692761
SN - 9781467345385
T3 - 2012 50th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2012
SP - 617
EP - 623
BT - 2012 50th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2012
Y2 - 1 October 2012 through 5 October 2012
ER -