THE PRICING STRATEGY OF COMPLETE PRE-ORDERED MERCHANDISE UNDER DISCOUNTED PROFIT FOR MAXIMIZING

2008 ◽  
Vol 25 (05) ◽  
pp. 613-624 ◽  
Author(s):  
MIAO-SHENG CHEN ◽  
FU-CHIEN TSAI
Keyword(s):  
Price Level ◽  
Rate Function ◽  
Pricing Strategy ◽  
Optimal Price ◽  
Price Variability ◽  
Intention To Purchase ◽  
Price Levels ◽  
Demand Rate ◽  
Potential Demand ◽  
Customer Purchases

When a customer steps into a complete pre-ordered store, he will review the merchandise and consider his demands based on the merchandise price levels and price variability at that point in time. However, after declaring his intention to purchase said merchandise, the store assistant informs him that the merchandise will not be available for a period of time. This is a typical stock-out merchandise scenario in which customers may only place an order for delivery at a later point in time. Therefore, whether or not customer purchases merchandise does not just depend on the price at that moment. It is also influenced by the expected future increase or decrease of the price of the merchandise and the length of time before the store can supply the merchandise. In this study, we will explore how to set price levels at each point in time during the stock-out period in order to maximize the discounted profit after considering the influence of the price level, price variability, and waiting time on customer demand. The main assumption in this study is that customers' potential demand rate function at a given point during the stock-out period is a linear function of the price level and price variability at that point. Also, the ratio function of customers willing to wait for the merchandise is an exponential function of the length of time before the merchandise will be delivered. Constructing a mathematical model that is concrete to discuss the above problem, to derive the optimal price function of the merchandise at each point in time, and to discuss the characteristics of this function are the main parts of this study.

A Study on Consumer Characteristics of Korean consumers' Intention to purchase Luxury Brand

2019 ◽  
Vol 118 (8) ◽  
pp. 420-430
Author(s):  
Ji-Hun Lee ◽  
Bok-Hyun Moon ◽  
Mi-Sook Yang
Keyword(s):  
Structural Equation ◽  
Service System ◽  
Equation Model ◽  
Pricing Strategy ◽  
Luxury Brands ◽  
Negative Image ◽  
Intention To Purchase ◽  
Characteristics Analysis ◽  
Changing Times

This study aims to suggest marketing implications for the success of the luxury brands in the market.Questionnaire was conducted for 360 consumers interested in purchasing luxury goods. The collected data were verified for the appropriateness of the structural equation model and the causation of each concept.luxury brands should put more effort to improve the quality and type of products through various consumer characteristics analysis, and build a pricing strategy to match consumer characteristics with various pricing systems and payment methods. In addition, it is necessary to pay more attention to setting the service system worthy of their luxury images so that the service system can also take the luxury image. What's more, since most luxury consumers are those who value their personality and image rather than cost, so they should do their best at each step so as not to give the negative image of the company to the eyes of the consumers until the end. And it needs to continue their research for enhanced quality of the products and manage the image to sustain the image of the company over time, and make efforts to understand the way of expressing the changing images in step with the changing times and read the cultural trend.

scholarly journals A Comparative Study of Renewable Energy Industry Regulation on Feed-In Tariffs Based on Pricing Strategy of Value Standard Method

2013 ◽  
Vol 2013 ◽  
pp. 1-9 ◽  
Author(s):  
Peng Sun
Keyword(s):  
Social Welfare ◽  
Standard Method ◽  
Energy Production ◽  
Pricing Strategy ◽  
Energy Industry ◽  
Pricing Strategies ◽  
Optimal Price ◽  
Industry Regulation ◽  
Regulation Type ◽  
Renewable Energy Industry

Based on pricing strategy of value standard method, we establish a three-stage game model of energy production to compare the differences of optimal regulated price and social welfare under three regulation types of feed-in tariffs. We show that the optimal price levels under three main regulation types are different. But the choice of regulation type does not impact the optimal social welfare. So policymakers with different preferences may make regulation decisions in different ways. This successfully explains why many regulation types exist in different countries. Moreover, although it is difficult to determine the optimal price by the value standard method in practice, the conclusions of this paper also provide a judgment criterion for other pricing strategies on how to choose a suboptimal regulation type.

scholarly journals Abolishing biofuel policies: Possible impacts on agricultural price levels, price variability and global food security

Food Policy ◽  
2016 ◽  
Vol 61 ◽  
pp. 9-26 ◽  
Author(s):  
Sergio René Araujo Enciso ◽  
Thomas Fellmann ◽  
Ignacio Pérez Dominguez ◽  
Fabien Santini
Keyword(s):  
Food Security ◽  
Price Variability ◽  
Global Food Security ◽  
Price Levels ◽  
Biofuel Policies ◽  
Agricultural Price ◽  
Global Food

scholarly journals Price level and brand knowledge and its effects on purchase behavior

2021 ◽  
Vol 14 (3) ◽  
pp. 632-654
Author(s):  
Deonir De Toni ◽  
Andressa Tormen ◽  
Gabriel Sperandio Milan ◽  
Luciene Eberle ◽  
Fernanda Lazzari
Keyword(s):  
Purchase Intention ◽  
Price Level ◽  
Customer Behavior ◽  
Purchase Behavior ◽  
High Price ◽  
Product Price ◽  
Brand Knowledge ◽  
Price Levels ◽  
Symbolic Value ◽  
High Price Level

Purpose:  this study aims to examine the impacts of price levels, high level vs. low level, associated to a known brand vs. an unknown brand over fairness perception, symbolism quality and purchase intention.Design/methodology/approach: one pre-experiment is conducted with a 2 (high price level vs. low price level) x 2 (known brand vs. unknown brand) between-subjects design and a sample of 152 jeans customers.Finding: the results indicate that different price levels with brand knowledge or without brand knowledge impact differently over customer behavior, mainly when it comes to quality, fairness, perceived value, symbolic value and purchase intention of the investigated product and that that the relation between symbolic value and purchase intention is totally mediated by the perceived fairness.Practical Implication: by understanding how customers integrate, relate and infer quality, fairness and symbolic aspects to products through their perceptions concerning price levels and brand knowledge levels, it is possible to supply marketing professionals with information that lead to better-informed choices about pricing policy and branding in their companies.Originality/value: among these research contributions, we emphasize the proposition of eleven research hypotheses that aim to better understand customer behavior from the manipulation of two variables: product price level and brand knowledge level and its impact on perceived quality, fairness, symbolism and purchase intention.

Market, Market Mechanism and Price Levels in Islamic Microeconomics Perspective

2019 ◽  
Vol 7 (2) ◽  
pp. 167-175
Author(s):  
Yudi Permana
Keyword(s):  
Price Level ◽  
Market Mechanism ◽  
Literature Study ◽  
Philosophical Approach ◽  
Market Mechanisms ◽  
Price Levels ◽  
Market Intervention ◽  
Principles Of Justice ◽  
The Government ◽  
Role Of The Government

This paper tries to discuss about Market, Market Mechanism and Price Levels in Islamic Microeconomics Perspective. In contrast to the conventional economy which frees the formation of price levels only on the market mechanism, determining the price level through market mechanisms in Islamic economics is based on the principles of justice in order to achieve mutual benefit (al-Mashlahah). Therefore, when inequality is detrimental to one party in a market, the role of the government in creating justice for both parties is a solution that is legitimate. This in microeconomic terminology is known as market intervention, which is carried out by the government as a step to stabilize the price level so that it does not harm one party in the market. Therefore, this study aimed to analyze the market and price levels in Islamic microeconomics with a philosophical approach. The methodology used in this study used qualitative research based on literature study. The result showed that there were some fundamental things that distinguished Islamic microeconomics from conventional in determining the price level in the Islamic market mechanism.

Do Psychological Barriers Exist in the Stock Price Indices? Evidence from Asia's Emerging Markets

2003 ◽  
Vol 6 (1) ◽  
pp. 35-52 ◽  
Author(s):  
Seungwook Bahng
Keyword(s):  
Emerging Markets ◽  
Corporate Finance ◽  
Stock Price ◽  
Price Level ◽  
Stock Index ◽  
Efficient Markets ◽  
Reference Levels ◽  
Psychological Barriers ◽  
Barrier Effects ◽  
Price Levels

This paper tests whether psychological barriers exist in the price levels of stock indices. Using the data from Asia's emerging markets and statistical methods, this study analyzes barrier effects around psychologically important reference levels. The results indicated the existence of a price barrier in the Taiwanese stock index. Other markets, however, do not seem to possess the effect of a selected reference point. The case of Taiwan is interpreted as evidence of a violation of market efficiency in the sense that the resulting distribution of random price level occurrences would be close to a uniform distribution in efficient markets. This research contributed to behavioral corporate finance by applying investor psychology and its effects on stock price levels.

Optimal pricing model for non-instantaneous deterioration items with price and freshness sensitive demand under the e-commerce environment in China

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Weihua Xu ◽  
Ketong Zhao ◽  
Yixuan Shi ◽  
Sun Bingzhen
Keyword(s):  
Dynamic Pricing ◽  
Decision Problems ◽  
Theoretical Research ◽  
Pricing Strategy ◽  
Optimal Pricing ◽  
Managerial Decision ◽  
Pricing Policy ◽  
Content Type ◽  
Demand Rate ◽  
Total Profit

Purpose The purpose of this paper is to focus on determining the optimal sales price for non-instantaneous deterioration items according to consideration of freshness and demand. Design/methodology/approach In this model, the authors have described the demand function which is dependent on price as well time. The products that the deterioration is considered as non-instantaneous have a determinate shelf life, and their demand rate will decrease over time after the beginning of the selling period. This paper depicts that the total profit of non-instantaneous deterioration items using the dynamic pricing strategy is higher than that using fixed pricing strategy. Findings Finally, to illustrate and validate the model, the authors have used some numerical examples. A new freshness function and the model to study pricing policy are developed as well applied to solve managerial decision problems. Originality/value This paper complements the lack of the existing theoretical research of pricing for non-instantaneous deterioration items under an e-commerce environment. A new freshness function and the model to study pricing policy are developed as well applied to solve managerial decision problems.

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