Dynamic Pricing for New Products Using a Utility-Based Generalization of the Bass Diffusion Model

The Bass Model (BM) has an excellent track record in the realm of new product sales forecasting. However, its use for optimal dynamic pricing or advertising is relatively limited because the Generalized Bass Model (GBM), which extends the BM to handle marketing variables, uses only percentage changes in marketing variables, rather than their actual values. This restricts the GBM’s prescriptive use, for example, to derive the optimal price path for a new product, conditional on an assumed launch price, but not the launch price itself. In this paper, we employ a utility-based extension of the BM, which can yield normative prescriptions regarding both the introductory price and the price path after launch, for the new product. We offer two versions of this utility-based diffusion model, namely, the Bass-Gumbel Diffusion Model (BGDM) and the Bass-Logit Diffusion Model (BLDM), the latter of which has been previously used. We show that both the BGDM and BLDM handily outperform the GBM in forecasting new product sales using empirical data from four product categories. We discuss how to estimate the BGDM and BLDM in the absence of past sales data. We compare the optimal pricing policy of the BLDM with the GBM and derive optimal pricing policies that are implied by the BLDM under various ranges of model parameters. We illustrate a dynamic pricing approach that allows managers to derive optimal marketing policies in a computationally convenient manner and extend this approach to a competitive, multiproduct case. This paper was accepted by Gui Liberali for the Management Science Special Issue on Data-Driven Prescriptive Analytics.

The impact of social shopping feature richness on buying intention: a product perspective

PurposeSocial shopping platforms have flourished by using multiple social shopping features, yet little is known about how the combination of these features affects purchase intention, particularly in terms of the product itself. The purpose of the paper is to draw on the concept of social shopping feature richness, adopting a formative approach on the survey used, and endeavors to reveal the concept's impact on consumers' buying intention from a product perspective.Design/methodology/approachBuilding on mental accounting and signaling theories, a theoretical model is proposed and empirically evaluated with 356 samples collected using a questionnaire survey.FindingsThe results suggest that social shopping feature richness promotes consumers' consumption by providing information signals to satisfy acquisition utility and transaction utility. Specifically, social shopping feature richness enhances perceived product quality, while decreasing negative perceptions regarding price. Moreover, perceived product quality and perceived price significantly influence buying intention through the mechanism of perceived value.Originality/valueThe authors' study highlights the role of the combination of functionally diverse social shopping features on product sales for social shopping platforms.

Like/Dislike Prediction for Sport Shoes With Electroencephalography: An Application of Neuromarketing

Neuromarketing is an emerging research field for prospective businesses on consumer’s preference. Consumer’s preference prediction based on electroencephalography (EEG) can reliably predict likes or dislikes of a product. However, the current EEG prediction and classification accuracy have yet to reach ideal level. In addition, it is still unclear how different brain region information and different features such as power spectral density, brain asymmetry, differential entropy, and Hjorth parameters affect the prediction accuracy. Our study shows that by taking footwear products as an example, the recognition accuracy of product likes or dislikes reaches 94.22%. Compared with other brain regions, the features of the frontal and occipital brain region obtained a higher prediction accuracy, but the fusion of the features of the whole brain region could improve the prediction accuracy of likes or dislikes even further. Future work would be done to correlate the EEG-based like or dislike prediction results with product sales and self-reports.

Digital marketing to increase sales of salted fish products in Muara Badak Ilir village, Kutai Kartanegara

The development of information technology has grown rapidly and has an impact on society in supporting various large and small-scale business activities. Digital Marketing is one of the means to sell that can help increase product sales compared to conventional sales. This community service aims to provide training and assistance to members of the Rukun Nelayan Toko Lima, Muara Badak Ilir Village, Kutai Kartanegara Regency in marketing tembang and anchovy salted fFish products as regional superior products. This program was carried out through a Focus Group Discussion (FGD) to explore problems in product marketing as well as training and assistance in website management, design and marketing of tembang and anchovy salted fish products. The results of the program show that members of the Rukun Nelayan Toko Lima can skillfully manage marketing through digital marketing and website.

Empowerment of beekeepers Trigona Sp. in Buahan Village based on the concept of 'The Spirit of Sobean'

Buahan Village is a village located in Payangan District, Gianyar Regency which has the potential to be developed in the agricultural and plantation sectors. Among them is the increased production of honey and processed honey in the form of herbal drinks, which greatly affect the income of MSMEs Buahan Mesari and Amerta Herbal. The problem faced is the lack of knowledge of MSMEs in Buahan Mesari regarding techniques for cultivating Trigona sp. bees. and the lack of insight into Amerta Herbal SMEs in developing efficacious herbal beverage derivative products. Through training for the people of Buahan Village related to Trigona sp. bee cultivation and the manufacture of kele honey-based products that are able to generate increased income and community welfare caused by increased product sales in the midst of the Covid-19 pandemic.

Pengambilan Keputusan Menggunakan Analytical Hierarchy Process (AHP) pada Pemilihan Pemasok Produk Lampu

This study aims to determine the best supplier for in-Lite lighting products. The company chose criteria and sub-criteria in supplier selection to optimize product sales continuity. This study used the Analytical Hierarchy Process (AHP) method, which provided information about the criteria, sub-criteria, and alternatives in the selection of three suppliers: A, B, and C. The existence of priority weights provided a decision in choosing the supplier of the lighting product. The new criteria and sub-criteria were the results of the literature study formulation and then adjusted again with the results of the interview. Seven criteria were determined in this study: production, price, quality, site selection, product suitability, delivery, and service. The results of the calculation of the priority weights of the criteria, sub-criteria, and alternative selection using a questionnaire. The parties involved in the selection of suppliers filled out the questionnaire to obtain a weight for each supplier. Based on the results of AHP calculations, supplier A got the highest weight of 0,442 or 44%, so this supplier is used as a company priority in choosing suppliers for in-Lite type lighting products.

E-COMMERCE LIVE STREAMING – AN EMERGING INDUSTRY IN CHINA AND A POTENTIAL FUTURE TREND IN THE WORLD

With the widespread use of the Internet, many industries have developed rapidly. The economy based on the Internet poses a significant threat to the traditional economy. Live streaming plus e-commerce, which is acknowledged as the current global economic status, is the result of combing live streaming and various industries through the Internet. E-commerce live streaming is one of the most essential types of online live streaming. In this article, it is defined as the live streaming of the e-commerce platform used by Key Opinion Leaders or product sellers through the built-in live streaming function of the platform to propagate goods, brands, events, etc. to achieve goals of brand exposure and product sales. Compared with the traditional economic model, the combined model of e-commerce and live streaming has its advantages and characteristics. This kind of marketing tool is now prevalent. However, there are many deficiencies in e-commerce live streaming that need to be improved since the development of e-commerce is immature and supervision of Internet use is ongoing.

Pengaruh Harga Dan Celebrity Endorser Terhadap Minat Beli Shampo Clear (Studi Kasus Pada Mahasiswa Universitas Sari Mutiara Indonesia)

Advertising through celebrity endorsers is currently in great demand to introduce and promote products to the public. The use ofadvertisements is celebrity endorser considered effective to increase product sales, this is because the development of very fast information flow is supported by the existence of technology that makes consumers able to absorb information and knowledge about a product quickly. Likewise with pricing strategies that can affect consumer buying interest. This study aims to determine the effect of price on interest in buying shampoo clear to the students of the Sari Mutiara Indonesia University, celebrity endorser on interest in buying shampoo clear to the students of the Sari Mutiara Indonesia University and celebrity endorser on interest in buying shampoo clear to the students of the Sari Mutiara Indonesia University. This research was conducted using a quantitative descriptive method by distributing questionnaires to 100 student respondents at the Sari Mutiara Indonesia University which were analyzed by multiple linear regression, the sampling technique was using Non-Probability Sampling.The results of this study indicate that the price variable (X1) has a significant positive effect on the buying interest variable (Y) while thevariable celebrity endorser (X2) has a significant positive effect on the buying interest variable (Y). It can be concluded that the influence of each variable simultaneously can be seen that Fhitung(117.184) >Ftable (3.09) or sig. of 0.000 < 0.05. The data were statistically processed using SPSS 25 program tools.

Penerapan Asosiasi Algoritma Apriori Pada Data Penjualan Alat-Alat Listrik Dan Tekhnik

The incompatibility of information in reporting productsthat are sold, and data storage is very large, business people, especially in the sales business are required to find an appropriate strategy that can increase sales and marketing of products sold, one of which is by using electronic product sales data. Therefore, anapplication is needed that is able to sort and select data, so that information can be obtained that is useful for users, namely data mining. Associate patterns can be used to place products that are often purchased together into an area that is close together so as to facilitate the customer in finding the desired product and designing the appearance of products in the catalog. The method used is theApriori Algorithm method, with the help ofTanagra 1.4.50 tools and processing transaction data using Microsoft Excel 2007.

Implementation of marketing strategy 4.0 to pastry producers in Taman District, Sidoarjo Regency

The COVID-19 pandemic has caused Danish Cake SMEs to experience a decline in turnover of up to 30%. This is due to the focus on offline product marketing, both through agents and resellers. While the pandemic has changed the way of shopping, most consumers prefer online shopping, because it is considered safer and minimizes direct contact with sellers. The problem-solving method used is to optimalize the marketing 4.0 strategy that combines offline and online interactions between producers and customers. For online channels, the service team created a shopping application via an Android phone as a virtual shopping facility and created a paspastry.com website which also functions as a customer database. With this application, consumers just shop through their respective cellphones, choose the desired cake, make a payment, and the cake will be sent to the buyer's house. Another use of online channels is to improve promotional content through Instagram, Facebook, and fanpages as well as by creating accounts on marketplaces such as Shopee. With the implementation of the Marketing 4.0 strategy, Danish Cake SMEs will increase their product sales, both online and offline, in addition to increasing branding awareness of the product.