Optimal Pricing Under Multiple-Discrete Customer Choices and Diminishing Return of Consumption

2021 ◽  
Author(s):  
Woonghee Tim Huh ◽  
Hongmin Li
Keyword(s):  
Optimal Pricing ◽  
Purchase Decisions ◽  
Ordered Sets ◽  
Product Attribute ◽  
Multiple Products ◽  
Multiple Units

Customers make purchase decisions based on the attributes of the products offered and their prices. While the customer selects only one unit of a product in some settings, she purchases multiple products and even possibly multiple units of each product in other settings. Although several studies in the literature have addressed the former case, little attention has been paid to the latter case, this paper’s subject. In this paper, the authors consider the customer's problem and show that the set of products she purchases is one of the ordered sets based on the product attribute and prices. This paper shows that the firm's optimal pricing problem can be solved efficiently based on another ordering among the products.

scholarly journals EXPRESS: Gimmicky or Effective? The Effects of Imaginative Displays on Customers’ Purchase Behavior

2021 ◽  
pp. 002224292199735
Author(s):  
Hean Tat Keh ◽  
Di Wang ◽  
Li Yan
Keyword(s):  
Purchase Behavior ◽  
Purchase Decisions ◽  
Shopping Experience ◽  
Low Costs ◽  
Store Environment ◽  
Product Sales ◽  
Multiple Units ◽  
Practical Implications

Prior research indicates the strategic importance of the store environment in enhancing customers’ shopping experience and their purchase decisions. This article examines the effects of imaginative displays on customers’ purchase behavior. An imaginative display is constructed using multiple units of the same product in a novel or innovative yet aesthetically appealing form, which could be themed (i.e., has a particular shape mimicking an object) or unthemed. Six studies in both lab and field settings show that, relative to standard displays (i.e., non-novel and neutral aesthetics), imaginative displays can increase customers’ purchase behavior and intentions. Importantly, for themed imaginative displays, these effects work through the dual mechanisms of affect-based arousal and cognition-based inferred benefits, which are contingent on congruence between display form and perceived product benefit. Findings from this research not only contribute to the literature on in-store display and store atmospherics, but also have significant practical implications for retailers. Specifically, while imaginative displays may appear gimmicky, they can favorably influence customers’ purchase behavior and increase product sales at relatively low costs.

scholarly journals EXPRESS: Perceived vs. Negotiated Discounts: The Role of Advertised Reference Prices in Price Negotiations

2021 ◽  
pp. 002224372110344
Author(s):  
Pranav Jindal
Keyword(s):  
Decision Making ◽  
Reference Price ◽  
Durable Goods ◽  
Purchase Decisions ◽  
Lab Experiment ◽  
Multiple Products ◽  
Reference Prices ◽  
Price Negotiations ◽  
Posted Price

Retailers routinely present a posted price together with a higher advertised reference price, in an effort to evoke a perception of the discount the consumer is receiving. If prices can be negotiated though, what impact does this initial perceived discount (IPD) have on the ultimate discount, demand, and revenue? With data from consumers of a large durable goods retailer, in a natural decision-making environment, this study provides evidence that a greater IPD is associated with smaller negotiated discounts. Then, a lab experiment involving negotiation and purchase decisions for multiple products, with randomly assigned values of the IPD, establishes that a $1 increase in IPD lowers the negotiated discount by 4.7 cents. Furthermore, 75% of this decrease can be attributed to reduction in the participants' likelihood to initiate a negotiation. Under bargaining, almost half of the increase in revenue from a higher IPD stems from an increase in the negotiated price, which is unlike fixed pricing, in which setting an increase in IPD affects revenue only through changes in demand. Sellers also have a greater incentive to set exaggerated advertised reference prices in bargaining contexts, compared with fixed pricing. These findings in turn have implications for researchers, retailers, and consumers.

Analisa Pengaruh Motivasi Konsumen, Persepsi Kualitas, Dan Sikap Konsumen Terhadap Keputusan Pembelian Sepeda Motor PT. Yamaha Indonesia MFG

CICES ◽  
2019 ◽  
Vol 5 (2) ◽  
pp. 188-203
Author(s):  
Ria Wulandari ◽  
M. Ifran Sanni ◽  
Dani Ramadhan
Keyword(s):  
Decision Making ◽  
Regression Analysis ◽  
Qualitative Analysis ◽  
Purchase Decisions ◽  
Analysis Method ◽  
Purchasing Decisions ◽  
Processing Data ◽  
Customer Purchases ◽  
Customer Attitudes ◽  
Quantitative And Qualitative Methods

This research is motivated by a decline in motorcycle sales produced by PT. Yamaha Indonesia MFG in the 2014-2018 period. In this research there was a decrease in the decision on the power of interest in customer purchases on PT. Yamaha Indonesia MFG so that later can be analyzed in the formulation of this paper, that how customer take motorcycle purchase decisions amid the phenomenon of competition and increasingly crowded sales rivalries. The purpose of this research was to analyze the influence of motivation, perceived quality, and customer attitudes toward decisions in purchasing Yamaha motorbikes. This research uses quantitative and qualitative methods. The respondents in this research were 100 people who could meet one to five criteria consisting of; initiator (initiator), influencer (influencer), decision making (decider), purchase (buyer), user (user) motorcycle production PT. Yamaha Indonesia MFG. There are 3 hypotheses formulated and tested using the Regression Analysis method. In qualitative analysis it is obtained from the interpretation of processing data by providing information and explanation. In the results of this research shows the results of Motivation, Quality Perception, and Customer Attitudes have a relationship that has a significant impact on Purchasing Decisions.

To the spectral theory of partially ordered sets

2018 ◽  
Vol 60 (3) ◽  
pp. 578-598
Author(s):  
Yu. L. Ershov ◽  
M. V. Schwidefsky
Keyword(s):  
Spectral Theory ◽  
Partially Ordered Sets ◽  
Ordered Sets ◽  
Partially Ordered

Optimal Pricing for Mobile Video Streaming in 3G Wireless Packet Networks

2012 ◽  
Vol 2 (2) ◽  
pp. 134-136
Author(s):  
Ch. Divya Ch. Divya ◽  
◽  
Dr. P. Govardhan Dr. P. Govardhan
Keyword(s):  
Video Streaming ◽  
Optimal Pricing ◽  
Packet Networks ◽  
Mobile Video ◽  
Mobile Video Streaming ◽  
Wireless Packet
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