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.

A Study on the Price Decisions of the Dual-Channel Composite Decision in B2C Mode

2014 ◽  
Vol 12 (4) ◽  
pp. 46-56 ◽  
Author(s):  
Haoxiong Yang ◽  
Wen Wang
Keyword(s):  
Marketing Channels ◽  
Online Marketing ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Online Retail ◽  
Pricing Decisions ◽  
Dual Channel ◽  
Two Factors ◽  
The Subject ◽  
The Impact

This paper studies the subject of pricing decisions of online dual-channel based on hybrid decisions wherein a manufacturer introduces direct online marketing channels beyond the traditional online retail channels. The purpose is to study how to balance the interests of different online channels and maximize the overall efficiency of the channel. Having considered both online channels' satisfaction and the hidden costs of channel selection, by means of the demand function of both channels derived from a consumer utility and selection model, the author investigates the impacts of these two factors on the online dual-channel pricing decisions. This article also further analyzes the impact of changes in these two factors for manufacturers, retailers and channel' total revenue, with the purpose to provide decision-making reference for the enterprises' managers in the supply chain to develop optimal pricing strategies.

scholarly journals Interactions of Bargaining Power and Introduction of Online Channel in Two Competing Supply Chains

2018 ◽  
Vol 2018 ◽  
pp. 1-18 ◽  
Author(s):  
Jie Wei ◽  
Tong Shao ◽  
Jing Zhao
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Numerical Approach ◽  
Optimal Pricing ◽  
Online Retailing ◽  
Pricing Decisions ◽  
Dual Channel ◽  
Maximal Profit ◽  
Competition Ability ◽  
Online Channel

This paper studies the effect of dual-channel format on supply chain’s competition ability and the effect of different bargaining powers on the competition between two supply chains and the optimal pricing decisions of all supply chain members when one supply chain introduces an online retailing channel. We develop four game models and obtain the optimal pricing decisions in closed form of these models and give some sensitivity analysis through numerical approach. Some new managerial insights are obtained as follows: Regardless of the two supply chain members’ bargaining forms, the optimal price, the maximal demand, and the maximal profit decrease as the self-price sensitivity decreases. The industry holds advantage in getting higher profit when the supply chain without online retailing channel is led by the retailer. In addition, we find that a manufacturer as a leader of its supply chain can get more profit when the competing supply chain’s leader is the manufacturer than when the competing supply chain’s leader is the retailer.

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 Effect of Capital Constraint in a Dual-Channel Supply Chain

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-14
Author(s):  
Lang Xu ◽  
Jia Shi ◽  
Jihong Chen
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Selling Price ◽  
Pricing Decisions ◽  
Dual Channel ◽  
Channel Strategy ◽  
Pricing Decision ◽  
Key Factor ◽  
Online Channel ◽  
Dual Channel Supply Chain

Capital constraint is a significant factor that mainly restricts the development of small- and medium-sized enterprises. This paper explores the channel strategy and pricing decision in a dual-channel supply chain, which consists of one supplier and one retailer. Adequate and inadequate capital constraints for the supplier are distinguished by determining whether open the retail channel to sell. The observations offer managerial insights into supply chain member. First, the results indicate that the capital constraint is a key factor affecting channel strategies and pricing decisions. With the increased value of capital constraint, the wholesale price of offline channel and the selling price of online channel firstly decrease and then remain constant. Second, the results demonstrate that, with capital constraint, the supplier pays more attention to consumers’ brand loyalty if it chooses to open the online channel only. Additionally, the price-sensitivity parameter has no effect on the strategy of opening only the offline channel. Moreover, when the channel competition is too intense, the supplier will choose to only open the online channel strategy and increase the online selling price if the capital is insufficient.

Optimal pricing decision of composite service offered by network providers in E-commerce environment

2021 ◽  
Author(s):  
Zheng Liu ◽  
Hangxin Guo ◽  
Yuanjun Zhao ◽  
Bin Hu ◽  
Xiaodong Ji ◽  
...  
Keyword(s):  
Optimal Pricing ◽  
Composite Service ◽  
Pricing Decision

Pricing insurance policies with offsetting relationship

2021 ◽  
pp. 1-27
Author(s):  
Hanbali Hamza
Keyword(s):  
Insurance Market ◽  
Optimal Pricing ◽  
Price Discounts ◽  
Insurance Policies ◽  
Life Data ◽  
Pricing Decision ◽  
Pricing Process ◽  
Pairwise Correlations ◽  
Number Of Customers ◽  
The Relationship

Abstract This paper investigates the benefits of incorporating diversification effects into the pricing process of insurance policies from two different business lines. The paper shows that, for the same risk reduction, insurers pricing policies jointly can have a competitive advantage over those pricing them separately. However, the choice of competitiveness constrains the underwriting flexibility of joint pricers. The paper goes a step further by modelling explicitly the relationship between premiums and the number of customers in each line. Using the total collected premiums as a criterion to compare the competing strategies, the paper provides conditions for the optimal pricing decision based on policyholders’ sensitivity to price discounts. The results are illustrated for a portfolio of annuities and assurances. Further, using non-life data from the Brazilian insurance market, an empirical exploration shows that most pairs satisfy the condition for being priced jointly, even when pairwise correlations are high.

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