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



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

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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.

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