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Pricing·Quality and Service Mix Strategies for Portal Sites Providing Various Services  

Lee, Kang Bae (Division of Business Administration, Catholic University of Pusan)
Joo, Cheol Min (Department of Industrial Engineering, DongSeo University)
Lee, Woon-Seek (Department of Industrial Engineering, Pukyong National University)
Publication Information
Journal of Korean Institute of Industrial Engineers / v.28, no.3, 2002 , pp. 291-301 More about this Journal
Abstract
In this paper, we introduce a mathematical model to analyze pricing/quality and service mix strategies for Internet Portal site. This model includes utilities and costs of each participants, i.e., user, third party provider, and portal sites. Especially, we consider portal sites that initiate their businesses by providing free services like free e-mail service or search service and providing several charged services. As the results, we can find that Portal sites should make the target of customers and focus them to maximize their profit. Portal sites should pay their marketing effort not for all customers but pertinent portions of customers. And Portal sites should make more efforts to efficiently develop and provision their services.
Keywords
internet business; portal sites; pricing; quality strategy;
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