scholarly journals Pricing Decisions on Reward-Based Crowdfunding with Bayesian Review System Facing Strategic Consumers

2019 ◽  
Vol 2019 ◽  
pp. 1-14
Author(s):  
Yuting Chen ◽  
Rong Zhang ◽  
Bin Liu
Keyword(s):  
Positive Impact ◽  
Online Reviews ◽  
Equilibrium Analysis ◽  
Review System ◽  
Pricing Policy ◽  
Strategic Consumers ◽  
Pricing Decisions ◽  
Pricing Decision ◽  
Responsive Pricing ◽  
Form Type

Crowdfunding marks a popular and sustainable means by which small and microentrepreneurs obtain financial resources for their innovative project. Consumers increasingly rely on online reviews to make purchase decisions. However, the crowdfunding nowadays lacks a form type of review system. This paper is designed to extend research on the optimal pricing decision with review system for the reward-based crowdfunding. Firstly, a Bayesian analysis is established to construct consumers’ belief update process in presence of review system. Secondly, we take the strategies without the review system as a benchmark to explore the impacts of review system under preannounced pricing and responsive pricing. Finally, through the equilibrium analysis, we find that the review system has a positive impact on the creator under responsive pricing policy. The fraction of favorable review has a large effect on the profit of preannounced pricing. When the fraction is about 80%, the profit is the maximum. Generally speaking, the review system will make more profit for the creator.

scholarly journals The Pricing Decision and Channel Choice of Upgraded Products in the Presence of Strategic Consumers

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Lingzhi Shao
Keyword(s):  
Dynamic Game ◽  
Optimal Pricing ◽  
Strategic Consumers ◽  
Channel Choice ◽  
Pricing Decisions ◽  
Dual Channel ◽  
Pricing Decision

Many dual-channel suppliers need to make appropriate strategies for their upgraded products in the presence of strategic consumers. This paper develops a two-period dynamic game framework to explore the optimal pricing and upgrade the channel choice when the supplier introduces new upgraded products to a market populated by strategic consumers. The results show that, under any upgrade channel choice, the strategic consumers’ behavior has impacts on supplier and retailer’s pricing decisions and reduces their profit. The supplier could choose appropriate upgrade channel to improve his performance according to the consumers’ patience and innovation level of upgrade products. The supplier should choose pure offline channel to upgrade products when the innovation level of upgraded product B is relatively small. With the sufficiently high innovation level, the supplier should adopt pure offline channel to upgrade products when consumers’ patience is low and uses dual-channel upgrade strategy when the patience is high enough.

Fixed, flexible, and dynamics pricing decisions of Airbnb mode with social learning

2020 ◽  
pp. 135481661989695 ◽  
Author(s):  
Yuting Chen ◽  
Rong Zhang ◽  
Bin Liu
Keyword(s):  
Social Learning ◽  
Dynamic Pricing ◽  
Positive Impact ◽  
Sharing Economy ◽  
Competitive Market ◽  
Risk Level ◽  
Risk Sensitivity ◽  
Peak Period ◽  
Pricing Decisions ◽  
Pricing Decision

The rise of the sharing economy has changed the traditional way of providing service to consumers. Airbnb is the most successful peer-to-peer model in the hospitality industry. This article investigates how to conduct strategic dynamic pricing in a competitive market by considering market conditions, quality, and risk sensitivity. Our research yields three main conclusions. First, we observe that the higher the risk level suppliers face, the more profit they will get; the lower the risk level consumers face, the more utilities they obtain. Second, we find that fixed pricing may be optimal or near-optimal for the platform when market size is small, the accommodation quality is better, and consumers’ reliability is low. Otherwise, a flexible pricing strategy is optimal. Finally, we extend the research into dynamic pricing decision in presence of Bayesian social learning and propose that the less-perfect accommodation requires social learning more urgently. In tourism peak period, social learning has less positive impact when the Airbnb accommodation is much perfect. These conclusions provide useful guidance on how the Airbnb and hotel can take advantage of the competitive market.

scholarly journals The Impact of Productivity Increasing in Indonesian Maritim Sector: General Equilibrium Analysis

2016 ◽  
Vol 5 (2) ◽  
pp. 133-148 ◽  
Author(s):  
Widyastutik Widyastutik
Keyword(s):  
Simulation Analysis ◽  
Positive Impact ◽  
Equilibrium Analysis ◽  
Productivity Improvement ◽  
Marine Transport ◽  
Transport Services ◽  
Increase In Productivity ◽  
Trade Analysis ◽  
Global Trade Analysis Project ◽  
The Impact

The increase in productivity in the maritime sector will realize the maritime sector as a prime mover. This study aims to analyze the impact of the maritime sector productivity improvement on the performance of the economy. This research simulates increased productivity in the maritime sector (consisting of the fisheries, oil, gas sub-sector and marine transport services sector) using the Global Trade Analysis Project (GTAP) version 8. Simulation analysis showed an increase in productivity in the maritime sector has a positive impact on welfare, real GDP, and trade balance of Indonesia. However, the impact of the increase in productivity is not followed by an increase in output in all sectors. This indicates that if the increase in productivity occurs only in the maritime sector alone without being followed by an increase in productivity in other sectors, the sectoral performance is not optimal.DOI: 10.15408/sjie.v5i2.3403

Focus Within or On Others: The Impact of Reviewers' Attentional Focus on Review Helpfulness

2021 ◽  
Author(s):  
Zhanfei Lei ◽  
Dezhi Yin ◽  
Han Zhang
Keyword(s):  
Boundary Condition ◽  
Theoretical Model ◽  
Positive Impact ◽  
Online Reviews ◽  
Attentional Focus ◽  
Controlled Experiments ◽  
Review Helpfulness ◽  
Context Specific ◽  
The Impact ◽  
Consistent Support

When reviewers write online reviews, they differ in the focus of their attention: some focus on their own experiences, whereas some direct their attention to others—prospective consumers who may read the reviews in the future. This paper explores how, why, and when reviewers’ attentional focus can influence the helpfulness evaluation of reviews beyond the impact of substantive review content. Drawing on the attentional focus and persuasion literatures, we develop a theoretical model proposing that reviewers’ attentional focus may influence consumers’ perception of review helpfulness through opposing processes, and that its overall effect is contingent on the review’s two-sidedness. Results of one archival analysis and five controlled experiments provide consistent support for our hypotheses. This work challenges the predominant view of the positive impact of other-focus (vs. self-focus), explores the interpersonal impact of a reviewer’s attentional focus on prospective consumers who are total strangers, and reveals an important, context-specific boundary condition.

scholarly journals Zero-rating food in South Africa: A computable general equilibrium analysis

2004 ◽  
Vol 7 (3) ◽  
pp. 521-531 ◽  
Author(s):  
M Kearney ◽  
J H Van Heerden
Keyword(s):  
General Equilibrium ◽  
Financial Services ◽  
Computable General Equilibrium ◽  
Positive Impact ◽  
Equilibrium Analysis ◽  
Cge Model ◽  
Percentage Increase ◽  
General Equilibrium Analysis ◽  
Revenue Sources ◽  
Poor Households

Zero-rating food is considered to alleviate poverty of poor households who spend the largest proportion of their income on food.  However, this will result in a loss of revenue for government.  A Computable General Equilibrium (CGE) model is used to analyze the combined effects on zero-rating food and using alternative revenue sources to compensate for the loss in revenue.  To prohibit excessively high increases in the statutory VAT rates of business and financial services, increasing direct taxes or increasing VAT to 16 per cent, is investigated.  Increasing direct taxes is the most successful option when creating a more progressive tax structure, and still generating a positive impact on GDP.  The results indicate that zero-rating food combined with a proportional percentage increase in direct taxes can improve the welfare of poor households.  

Perceived credibility of online hotel reviews and its impact on hotel booking intentions

2019 ◽  
Vol 31 (9) ◽  
pp. 3465-3483 ◽  
Author(s):  
Uttam Chakraborty
Keyword(s):  
Structural Equation ◽  
Positive Impact ◽  
Online Reviews ◽  
Equation Modeling ◽  
Measurement Scales ◽  
Content Type ◽  
Perceived Credibility ◽  
Booking Intentions ◽  
Hotel Booking ◽  
The Impact

Purpose This study aims to evaluate the vitality of source, receiver and message factors on credibility assessment of online hotel reviews. Further, the current study determines the effects of perceived credibility of online reviews (PCOR) on hotel booking intentions (HBI). Design/methodology/approach The current study performs reliability analysis to determine the internal consistency of the measurement scales and to ensure the uni-dimensionality of the measurement scales the present study performs exploratory factor analysis. Further, the present study performs structural equation modeling to identify the relationships between the variables. Findings Two-sided online reviews have a more significant positive impact on PCOR as compared to the effects of receiver, review quality, review consistency and negative-sided online reviews. Originality/value This is one of the first study that analyses the impact of source, receiver and message on PCOR. Moreover, the present study offered theoretical justification behind the factors that affect the authenticity of online hotel reviews and its effects on HBI.

scholarly journals Understanding and Encouraging Online Reviewing With a Selection-Based Review System

2019 ◽  
Vol 31 (5) ◽  
pp. 446-464
Author(s):  
Rowanne Fleck ◽  
Benjamin R Cowan ◽  
Eirini Darmanin ◽  
Yixin Wang
Keyword(s):  
Cost Benefit ◽  
Online Reviews ◽  
Review System ◽  
Personal View ◽  
Trade Off ◽  
Consumer Reviews ◽  
Online Consumer Reviews ◽  
Mobile Interface ◽  
Online Consumer ◽  
The Cost

Abstract Online consumer reviews are important for people wishing to make purchases online. However, not everyone contributes online reviews. This paper looks at consumer motivations of reviewing and rating behaviour in order to motivate the design of a mobile interface for online reviewing. An interview study found that people tend to contribute reviews and ratings based on their perception of whether they would be helpful or not to others as well as their own personal view of the usefulness of reviews and ratings when buying products. There also seems to be a cost-benefit trade-off that influences people’s decisions to review and rate: people tend to make a decision based on the perceived value of that review or rating to the community against the effort and costs of contributing. A mobile interface was designed that was intended both to reduce the cost of leaving reviews and to increase the perception of the usefulness of the reviews to others. An initial evaluation of this reviewing interface suggests that it could encourage more people to leave reviews.

The Impact of Star Ratings and Corporate Affiliation on Hotel Room Prices in Israel

2000 ◽  
Vol 2 (1) ◽  
pp. 27-36 ◽  
Author(s):  
Aviad A. Israeli ◽  
Natan Uriely
Keyword(s):  
Positive Impact ◽  
Rating System ◽  
High Quality ◽  
Price Variation ◽  
Star Rating ◽  
Hotel Room ◽  
Pricing Decisions ◽  
The Impact

The purpose of this paper is to investigate the pricing decisions of hotels in an effort to ascertain whether corporate affiliation and stars influence hotels' pricing decisions. The findings suggest that high-quality (ie four- and five-star) hotels tend to be affiliated with chains and signal this affiliation using a naming strategy. In addition, the industry-based star rating system explains a large part of the price variation. The impact of corporate affiliation, modelled as the size of the corporation, has a relatively smaller, but overall positive, impact on price. An investigation of different locations reveals that the intensity of corporate affiliation, and specific characteristics of the consumers' market in each location are also significant in explaining the hotels' pricing decisions.

scholarly journals A FUZZY LOGIC ENHANCED BARGAINING MODEL FOR BUSINESS PRICING DECISION SUPPORT IN JOINT VENTURE PROJECTS / FUZZY LOGINIO PASIKEITIMŲ VERTINIMO METODO TAIKYMAS JUNGTINĖS VEIKLOS PROJEKTŲ VERTEI NUSTATYTI

2011 ◽  
Vol 12 (2) ◽  
pp. 234-247 ◽  
Author(s):  
Min-Ren Yan
Keyword(s):  
Decision Support ◽  
Set Theory ◽  
Joint Venture ◽  
Bargaining Model ◽  
Decision Support Model ◽  
Short Term ◽  
Bargaining Process ◽  
Pricing Decisions ◽  
Pricing Decision ◽  
Bargaining Positions

Project businesses are increasingly emerging and many companies cooperatively participate in various projects by the manner of joint venture (JV) for creating synergistic competitiveness. In a project-based short-term JV, the project tasks of JV parties can be properly allocated based on complementary specialties but the rewards sharing is always a challenge in the bargaining process. For improving the manager's reasoning process of pricing decisions, this paper incorporates game theory and fuzzy set theory for the development of a bargaining model, which can be used to estimate acceptable prices for JV parties in accordance with each party's costs and each party's need for the project's revenue. The proposed decision support model can assist JV companies to understand their bargaining positions and select a bargaining strategy in a systematic and rational manner. Irrational offers and alternatives can also be detected and eliminated during the dynamic bargaining process, so as to maintain right businesses. Santrauka Verslo projektai savo dydžiu, tematika, pobūdžiu ir kitais aspektais nuolat kinta, todėl dauguma kompanijų, siekdamos išlaikyti konkurencinį pranašumą bei rengdamos įvairius projektus, jungiasi į tam tikras jungtines įmones, kurios vykdo jungtines veiklas, skirtas tik tam projektui įgyvendinti. Tokios įmonės, kurios apribotos projekto trukmės, įgauna tam tikrų savybių, kai tikėtina nauda iš šio susijungimo yra neapibrėžta ir nuolat kinta. Šio straipsnio autoriai, siekdami pagerinti motyvacinę vadovų sistemą, priimdami sprendimus dalyvauti jungtinėje veikloje ir įvertindami priimtiną santykį tarp investuojamos sumos dydžio ir tikėtinos naudos, taiko žaidimų teoriją bei Fuzzy metodą.

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