Promotional Tools Influencing Service Consumption of Platform Businesses: A Study on Dhaka City



Abstract Views
552

Downloads
311

Citations

Share

##plugins.themes.bootstrap3.article.sidebar##

Submitted Oct 22, 2022
Published Nov 24, 2022
10.24018/ejbmr.2022.7.6.1718

Abstract viewed = 552 times

Table of Contents

##plugins.themes.bootstrap3.article.main##

This paper aims to investigate the impact of promotional tools on platform businesses, which is a capability-based value-creation business model. Primary and secondary information has been collected for this study to identify the affiliation between promotion and its impact on users’ responses. To test the hypothesis that the promotion of platform business leads to an increase in its usage rate, a survey is conducted, and respondents are selected from two different City Corporations in Dhaka. A descriptive analysis is made by surveying total of 219 respondents. Among them, 116 samples are collected from Dhaka South City Corporation & remaining 103 samples are collected from Dhaka North City Corporation. The result revealed that there is an impact of promotion to increase the usage frequency of the platform’s users. Particularly sales promotional offers are mostly influencing users of platform businesses. It is also evident that due to promotional offers users are motivated for stockpiling which is directly hitting the sales revenue of the platform businesses.

Keywords: Eco-System, Interactions, Network Effect, Platform Business, Supply-and-Demand Side, Shared Value, Value Co-Creation.

Downloads

Download data is not yet available.

References

  1. Ailawadi, K., & Neslin, S. (1998). The Effect of Promotion on Consumption: Buying More and Consuming it Faster. Journal of Marketing Research, 35(3), pp.390-398.
     Google Scholar
  2. Alireza Aghighi, M. (2020). Analyzing The Influence Of Sales Promotion On Customer Purchasing Behavior.
     Google Scholar
  3. Bhandari, P. (2022, October 10). Operationalization | A Guide with Examples, Pros & Cons. Scribbr. https://www.scribbr.com/methodology/operationalization/
     Google Scholar
  4. Bhasin, H. (2021). Causal Research - Meaning, Explanation, Examples, Components. [online] Marketing 91. Retrieved from: <https://www.marketing91.com/causal research/#:~:text=increase%20in%20sales.,Advantages%20of%20causal%20researches,taking%20place%20in%20the%20system.&text=Causal%20research%20provides%20the%20benefits,the%20processes%20and%20existing%20methods.> [Accessed 22 March 2021].
     Google Scholar
  5. McCombes, S. (2022, November 11). What Is a Research Methodology? | Steps & Tips. Scribbr. Retrieved from: https://www.scribbr.com/dissertation/methodology.
     Google Scholar
  6. Boudreau, K. (2010). Open Platform Strategies and Innovation: Granting Access vs. Devolving Control. Management Science, 56(10), pp.1849-1872.
     Google Scholar
  7. Eisenmann, T., Parker, G., & Van Alstyne, M. W. (2006). Strategies for two-sided markets. Harvard business review, 84(10), 92.
     Google Scholar
  8. Evans, D.S. and Schmalensee, R. (2008). ‘Markets with two-sided platforms’ Issues in Competition Law and Policy (ABA Section of Antitrust Law), 1.
     Google Scholar
  9. Gawer, A., & Cusumano, M. (2013). Industry Platforms and Ecosystem Innovation. Journal of Product Innovation Management, 31(3), pp.417-433.
     Google Scholar
  10. Ghafran Ashraf, M. (2014) The promotional tools and situational factors’ impact on consumer buying behaviour and sales promotion. Journal of Public Administration and Governance, 4(2).
     Google Scholar
  11. Goddard, W., & Melville, S. (2001). Research Methodology: An Introduction (2nd ed.). Johannesburg, 2196, South Africa: Juta and Company.
     Google Scholar
  12. Kim, J., Yoo, J. (2019). Platform Growth Model: The Four Stages of Growth Model. Sustainability, 11(20), p. 5562.
     Google Scholar
  13. Kim, J. (2016). The platform business model and business ecosystem: quality management and revenue structures. European Planning Studies, 24(12), pp. 2113-2132.
     Google Scholar
  14. Macdonald, S., Headlam, N. (2008). Research Methods Handbook: Introductory Guide to Research Methods for Social Research. Manchester, London: CLES.
     Google Scholar
  15. Mela, C., Jedidi, K., & Bowman, D. (1998). The Long-Term Impact of Promotions on Consumer Stockpiling Behavior. Journal of Marketing Research, 35(2), pp.250-262.
     Google Scholar
  16. MIT Sloan Management Review. (2021). Planning for Product Platforms. [online] Available at: <https://sloanreview.mit.edu/article/planning-for-product-platforms/> [Accessed 22 February 2021].
     Google Scholar
  17. Odunlami, I., & Ogunsiji, A. (2020). Effect Of Sales Promotion As A Tool On Organizational Performance: A Case Study Of Sunshine Plastic Company. [online] Hdl.handle.net. Available at: <https://hdl.handle.net/10520/EJC133854> [Accessed 28 December 2020].
     Google Scholar
  18. Park, H., Kim, S., Jeong, Y. and Minshall, T. (2020). Customer entrepreneurship on digital platforms: Challenges and solutions for platform business models. Creativity and Innovation Management, 30(1), pp.96-115.
     Google Scholar
  19. Peattie, S. and Peattie, K.J. (1994), “Sales promotion”, in Baker, M.J. (Ed.), The Marketing Book, 3rd ed., Butterworth Heinemann, London.
     Google Scholar
  20. Pettinger, T., 2021. Network Effects - definition and examples - Economics Help. [online] Economics Help. Available at: <https://www.economicshelp.org/blog/glossary/network-effects/> [Accessed 24 January 2021].
     Google Scholar
  21. Robertson, D., & Ulrich, K. (1998). Planning for Product Platforms. Sloan Management Review, 39(4), 19-31.
     Google Scholar
  22. Rochet, J., & Tirole, J. (2003). Platform Competition in Two-Sided Markets. Journal of the European Economic Association, 1(4), pp.990-1029.
     Google Scholar
  23. Smedlund, A. (2012). Value Cocreation in Service Platform Business Models. Service Science, 4(1), pp.79-88.
     Google Scholar
  24. Srnicek, N. (2017). The challenges of platform capitalism: Understanding the logic of a new business model. Juncture, 23(4), pp.254-257.
     Google Scholar
  25. Sun, B., Neslin, S., & Srinivasan, K., 2003. Measuring the Impact of Promotions on Brand Switching When Consumers Are Forward Looking. Journal of Marketing Research, 40(4), pp.389-405.
     Google Scholar
  26. The Daily Star. (2021, February 13). E-Commerce of Bangladesh in the next five years: What to expect? https://www.thedailystar.net/supplements/30th-anniversary-supplements/going-digital/news/e-commerce-bangladesh-the-next-five-years-what-expect-2043981
     Google Scholar
  27. Täuscher, K., & Laudien, S. (2017). Too Big to Fail? Overcrowding a Multi-Sided Platform and Sustained Competitive Advantage. Proceedings of the 50th Hawaii International Conference on System Sciences (2017).
     Google Scholar
  28. Täuscher, K., & Laudien, S. (2018). Understanding platform business models: A mixed methods study of marketplaces. European Management Journal, 36(3), pp.319-329.
     Google Scholar
  29. Ulrich, D. R. and K. (1998, July 15). Planning for product platforms. MIT Sloan Management Review. Retrieved May 2, 2021, from https://sloanreview.mit.edu/article/planning-for-product-platforms/
     Google Scholar