scholarly journals To Have Your Cake and Eat It? A Two-Period Model for Retailers’ Mixed Bundling or Reserved Product Pricing Strategies in Response to Supplier Encroachment

IEEE Access ◽  
2019 ◽  
Vol 7 ◽  
pp. 91731-91744 ◽  
Author(s):  
Junwu Chai ◽  
Zhifeng Qian ◽  
Enock Mintah Ampaw ◽  
Hong Chen
Keyword(s):  
Pricing Strategies ◽  
Product Pricing ◽  
Mixed Bundling ◽  
Period Model

scholarly journals Bundle-Size Pricing as an Approximation to Mixed Bundling

2011 ◽  
Vol 101 (1) ◽  
pp. 263-303 ◽  
Author(s):  
Chenghuan Sean Chu ◽  
Phillip Leslie ◽  
Alan Sorensen
Keyword(s):  
Multiproduct Firms ◽  
Pricing Strategies ◽  
Mixed Bundling ◽  
Bundle Size ◽  
The Individual

Multiproduct firms can set separate prices for all possible bundled combinations of its products (“mixed bundling”). However, this is impractical for firms with more than a few products, because the number of prices increases exponentially with the number of products. We find that simple pricing strategies are often nearly optimal. Specifically, we show that bundle-size pricing—setting prices that depend only on the size of bundle purchased—tends to be more profitable than offering the individual products priced separately and tends to closely approximate the profits from mixed bundling. (JEL D24, D42, L11, L13, L25).

scholarly journals The Analysis of Blocking Behavior and Pricing: The Case of Airbnb

2020 ◽  
pp. 1-28
Author(s):  
Yifeng Peng
Keyword(s):  
Empirical Analysis ◽  
Rapid Growth ◽  
Profit Maximization ◽  
Sharing Economy ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Product Pricing ◽  
Starting Point ◽  
The Future ◽  
Resources Sharing

Over the years, as people's lives have improved, our need for transportation and accommodation has increased, driving the rapid growth of the sharing economy. Some well-known network sharing platforms, such as Uber, Drip and Airbnb, provide a large number of convenient options for users with transactional needs, make more use of idle tourism, accommodation and other resources. Sharing economy platforms continue to improve the content and format of their products, but at the same time, the future of sharing platforms and the difficulty of competition is a concern as more platform companies become involved and prices become more transparent. Under this circumstance, optimizing product pricing has become an urgent need for many sharing economy platforms. In this paper, we take Airbnb as the starting point and conduct an empirical analysis of the blocking behavior of homeowners based on proprietary data to explore the factors that affect their product supply. We find that price, number of beds, and listing type all have a significant impact on blocking houses. After that, we conducted further research on price factors and developed a model aiming at profit maximization to obtain the best pricing range for the region and provide suggestions for pricing strategies. Keywords: Sharing Economy, Blocking behavior, Pricing Strategy, Airbnb

Pricing for New Products

2013 ◽  
pp. 56-74
Keyword(s):  
New Product Development ◽  
New Products ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Product Innovations ◽  
Product Pricing ◽  
Pricing Process ◽  
Product Scope ◽  
Market Needs ◽  
Market Strategies

Pricing strategies specify market needs that may be served by different price offerings. The pricing strategies of the company are duly related to market strategies that eventually come to dominate both the overall strategy and the spirit of the company. Pricing strategies deal with matters such as number and diversity of products, product innovations, product scope, and product design. The implementation of pricing strategies requires cooperation among different groups including finance, research and development, the corporate staff, and marketing. This chapter guides managers as to how to manage the concept pricing process for new product development effectively by the customer centric companies through mapping the consumer perceptions about their needs and expected products. In this chapter, the author describes how companies get customer centric pricing strategy, product pricing, and tactical moves in a way that help the firms to get the competitive advantage and build profits in the future.

scholarly journals Optimal Channel Choice of Firms with New and Remanufactured Products in the Contexts of E-Commerce and Carbon Tax Policy

2019 ◽  
Vol 11 (19) ◽  
pp. 5407
Author(s):  
Cao ◽  
Xu ◽  
Wang
Keyword(s):  
Tax Policy ◽  
Carbon Tax ◽  
Profit Maximization ◽  
Optimization Theory ◽  
Total Carbon ◽  
Pricing Strategies ◽  
Channel Choice ◽  
Product Pricing ◽  
Negative Effect ◽  
Positive Effect

: This paper is motivated by the dilemma faced by firms who sell new and remanufactured products offline that need to consider whether to enter e-commerce platforms considering that more and more consumers are shopping online on e-commerce platforms rather than shopping offline. Our paper aims to help firms with new and remanufactured products make a channel choice and determine product pricing strategies in the contexts of e-commerce and carbon tax policy. Our paper uses optimization theory, game theory, utility functions and profit-maximization models to investigate the optimal channel choice of whether a firm should enter an e-commerce platform; it also investigates the optimal prices of new and remanufactured products and referral fees in two cases—the firm does not enter the platform (N) and the firm enters the platform (Y). Some insights are presented as follows: We found that the firm should enter the platform if the annual service fee is relatively low, otherwise, the firm should not enter the platform. Interestingly, in the case of a firm with an offline store with relatively large operational costs or hassle costs, the firm is more reluctant to enter the platform. In the extension, we considered some consumers who only purchase offline products, and found that the firm considering these consumers is more likely to choose not to enter the platform. Moreover, we argue that the carbon tax policy has a positive effect on product prices but a negative effect on referral fees charged by the platform, and the choice of Y hurts the environment due to a relatively high total carbon emission.

New B2B product pricing

2020 ◽  
Vol 35 (11) ◽  
pp. 1861-1869
Author(s):  
Kostis Indounas
Keyword(s):  
Mail Survey ◽  
Pricing Strategies ◽  
Related Factors ◽  
Content Type ◽  
Product Pricing ◽  
New Business ◽  
Competitive Prices ◽  
Business To Business ◽  
Practical Implications ◽  
Initial Price

Purpose The purpose of this paper is to investigate the characteristics that lead to the adoption of the three new business-to-business (B2B) product pricing strategies, namely, skimming pricing (i.e. a high initial price), penetration pricing (i.e. a low initial price) and pricing similar to competitive prices. Design/methodology/approach To achieve the study’s research objectives, data were collected through a mail survey from 116 B2B firms, operating in four different sectors. Findings The adoption of skimming pricing and penetration pricing is triggered by company-related factors that are associated with the company’s corporate and marketing strategy and the product characteristics, while the adoption of pricing similar to competitive prices is influenced by market-related factors that are associated with customers’ and competitors’ characteristics. Practical implications The above findings indicate that the managers responsible for setting prices for new B2B products should follow a “situation-specific approach” and be guided by the unique characteristics of their internal and external environment. Originality/value Its contribution lies on the fact that, building upon quests within the existing literature, it constitutes one of the first attempts to examine empirically the aforementioned issue.

Pricing Strategies of Unbundling and Mixed-Bundling in a Two-Sided Market Under Stochastic Demand

2020 ◽  
Vol 37 (03) ◽  
pp. 2050016
Author(s):  
Xiaogang Lin ◽  
Yong-Wu Zhou ◽  
Qiang Lin
Keyword(s):  
Stochastic Demand ◽  
Sharp Contrast ◽  
The Other ◽  
Network Effect ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Royalty Rate ◽  
Mixed Bundling ◽  
The Impact ◽  
Two Sided Markets

We investigate the pricing strategies of unbundling and mixed-bundling for a firm that produces both a product and a compatible integrated content, respectively. The firm can be viewed as a two-sided transaction platform between sellers and customers, and decides whether to sell the product and the integrated content separately or jointly. Sellers develop independent content and are charged a per-unit royalty rate for each transaction on the platform, and customers are required to pay the prices for the product and the contents. With the consideration of stochastic demand, we study the impacts of cross-side network effect on the pricing strategies of unbundling and mixed-bundling, respectively. Moreover, we compare the impact of unbundling and mixed-bundling on the pricing strategy of the platform. Compared with no cross-side network effect, we show that the firm (with unbundling and mixed-bundling) need not subsidize customers and sellers in the presence of the effect under certain conditions, indicating that it can extract the most surplus from both sides to maximize the profit. This stands in sharp contrast to the finding of the literature on two-sided markets that the platform should subsidize one side of the market in order to make profit from the other side. Moreover, our result suggests that mixed-bundling can help the firm make more profit with fewer products by subsidizing one side of the market compared with the unbundling.

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