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《Chinese Journal of Management Science》 2019-01
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Effect of the Online Video Operator Free Trial on Marketing Strategy

LI Zi-qing;TAN De-qing;School of Economices and Management,Huaiyin Normal University;School of Economics and Management,Southwest Jiaotong University;  
With the rise of online video operators' charging program free trial,yet little is known about the marketing strategy impact such as marketing size and profits of free trial.A game model is developed between the operator with his program premiered and the other operator with his program sequently showed.The impacts of free trial before high-quality operator premiere program on two operators optimal advertising level under ad-sponsored free program model,the program optimal price under payment-based program models and optimal program provision model are studied.The result shows that,if the highquality operator provids enough free trial before high-quality operator′s premiere program,he can gain the highest program price and the most profits.The enough free trial is the high-quality operator′s optimal strategy.If the low-quality operator advertising unit revenue and unit adverting cost to an user meets certain conditions,the high-quality operator′s enough free trial can shrink the low-quality operator′s profits and prevent his free-ride.Under the high-quality operator enough free trial,payment-based program model is the high-quality operator′s optimal marketing strategy and ad-sponsored free program model is the low-quality operator′s optimal marketing strategy.Some managerial implications and application value for daily operation of online video operators are also provided.
【Fund】: 江苏高校哲学社会科学研究基金资助项目(2018SJA1596)
【CateGory Index】: G223
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