Differential Subsidy Strategy of O2O Platform Considering User Segmentation

Abstract

Abstract: In the context of Online to Offline (O2O), we purpose a sequential game participated by platform manager, merchants, and users. Considering the stochasticity of consumption behavior, this study shows the equilibrium of service quality and subsidy level in the case of unified subsidy strategy. To further analyze the characteristics of user demand, the game equilibrium of user segmentation is explored under different contract forms (Single and Differential commission rate). The result shows that user segmentation supports platform in building more stable customer relationship and helps them allocate constrained marketing resources to user group with higher service demand. To improve the low service quality obtained by high-value users under the Single commission rate, this paper proposes a contract from with Differential commission rate. The study analyzes the impact of different scenarios of commission rate on consumption behavior and operation decisions, and finds the platform does not always tend to use “big-data enabled price discrimination against existing customers” on O2O platform. Our results provide managerial insights for platform operations and governance.

Key words: online to offline platform, consumer behavior, user segmentation, subsidy strategy, service quality

Kang Yaling, Wu Zhiqiao. Differential Subsidy Strategy of O2O Platform Considering User Segmentation[J]. Management Review, 2026, 38(7): 241-251.

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