scholarly journals Pricing Strategy and Quick Response Adoption System with Strategic Customers

2017 ◽  
Vol 2017 ◽  
pp. 1-17
Author(s):  
Junfeng Dong ◽  
Li Jiang ◽  
Yan Jiao
Keyword(s):  
Competitive Advantage ◽  
Strategic Behavior ◽  
Pricing Strategy ◽  
Uncertain Demand ◽  
Pricing Strategies ◽  
Quick Response ◽  
Strategic Customers ◽  
High Profit ◽  
Commitment Strategy ◽  
Second Period

This study determined the competitive advantage of a quick response (QR) system when a firm faces forward-looking customers with heterogeneous and uncertain valuations for a product, uncertain demand, and two selling periods. We identify two classes of pricing strategies, namely, no-price commitment strategy and price commitment strategy. Interestingly, the unique equilibrium is proven to exist if and only if most customers have high tastes on a product’s value. We also prove that when customers possess beliefs about the markdown in the second period being smaller enough, a firm obtains a high profit with price commitment; otherwise he obtains a high profit without price commitment. Moreover, we distinguish the competitive advantage of a QR system from two strategies. When a firm uses no-price commitment strategy, the value of QR system in the first period decreases and in the second period increases with customer’s strategic behavior. When a firm provides price commitment, the value of QR system in the first period may increase, decrease, or decrease first and then increase with customer’s strategic behavior. And the value of QR in the second period under price commitment strategy decreases or rises first and then decreases with customer’s strategic behavior.

scholarly journals Selling to strategic customers with cost uncertainty

2020 ◽  
Vol 14 (1) ◽  
Author(s):  
Guodaohou Song ◽  
Xiaofang Wang
Keyword(s):  
Production Cost ◽  
Learning Effect ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Strategic Customers ◽  
Cost Uncertainty ◽  
Intertemporal Pricing ◽  
Negative Comments ◽  
Second Period

AbstractProduction cost can be influenced by previous sales in an uncertain way. In reality, production cost may decrease in the number of initial buyers due to the learning effect, or increase in the number of initial buyers due to the quality-improving pressure from negative comments of unhappy users. Taking this uncertainty into account, this paper studies the optimal intertemporal pricing strategies of a firm when selling to strategic customers in two periods where production cost in the second period randomly changes with the number of buyers in the first period. Our results suggest how firms should adjust their optimal pricing strategies under different market circumstances.

Decision-making for location of manufacturing bases in an uncertain demand situation

2021 ◽  
pp. 1-13
Author(s):  
Sun Jianzhu ◽  
Zhang Qingshan ◽  
Yu Yinyun
Keyword(s):  
Site Selection ◽  
Fuzzy Numbers ◽  
Uncertain Demand ◽  
Quick Response ◽  
Time Cost ◽  
Location Selection ◽  
Manufacturing Enterprises ◽  
Service Efficiency ◽  
Equipment Manufacturing ◽  
Smart Industry

Multi-site selection is a hot research issue for equipment manufacturing enterprises. With the development of smart industry, equipment manufacturing enterprises have entered the era of personalized and small batch manufacturing. Enterprises want to better meet customer needs and win competition, they must carry out scientific factory planning and site selection, so as to ensure quick response to the market. Based on this, this paper proposes a two-stage location selection model. Firstly, the method uses fuzzy numbers to express the demand size of demand points. Secondly, the distance factor is used as a criterion to select the candidate manufacturing bases with sufficient available resources. Next, the location model of enterprise manufacturing base is established which the goal of maximizing service efficiency and the constraints of time, cost and demand. Finally, a random numerical example is used to simulate the model, and lingo is used to solve it.

scholarly journals The Analysis of Blocking Behavior and Pricing: The Case of Airbnb

2020 ◽  
pp. 1-28
Author(s):  
Yifeng Peng
Keyword(s):  
Empirical Analysis ◽  
Rapid Growth ◽  
Profit Maximization ◽  
Sharing Economy ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Product Pricing ◽  
Starting Point ◽  
The Future ◽  
Resources Sharing

Over the years, as people's lives have improved, our need for transportation and accommodation has increased, driving the rapid growth of the sharing economy. Some well-known network sharing platforms, such as Uber, Drip and Airbnb, provide a large number of convenient options for users with transactional needs, make more use of idle tourism, accommodation and other resources. Sharing economy platforms continue to improve the content and format of their products, but at the same time, the future of sharing platforms and the difficulty of competition is a concern as more platform companies become involved and prices become more transparent. Under this circumstance, optimizing product pricing has become an urgent need for many sharing economy platforms. In this paper, we take Airbnb as the starting point and conduct an empirical analysis of the blocking behavior of homeowners based on proprietary data to explore the factors that affect their product supply. We find that price, number of beds, and listing type all have a significant impact on blocking houses. After that, we conducted further research on price factors and developed a model aiming at profit maximization to obtain the best pricing range for the region and provide suggestions for pricing strategies. Keywords: Sharing Economy, Blocking behavior, Pricing Strategy, Airbnb

Le leve della competizione assortimentale

2009 ◽  
pp. 71-90
Author(s):  
Edoardo Fornari ◽  
Sebastiano Grandi
Keyword(s):  
Competitive Advantage ◽  
Pricing Strategies ◽  
Competitive Markets ◽  
Focus Attention ◽  
Product Range ◽  
The One

- The aim of this paper is to in-depth analyze assortment as a key-dimension of competition between grocery retailers. Supermarkets located in the same area are generally characterized of a part of product range which is the same as the one proposed by direct competitors. Each retailer tends to frequently monitor this kind of products and brands, which are directly comparable, in order to well know pricing strategies of other retailers. However, in the actual hyper-competitive markets, large retailers need to find out new sources of competitive advantage, different from low pricing. So that it could be useful to focus attention on the exclusive part of assortments, which is a great differentiation (and non-price) lever.Keywords: assortments, competition, superposition, modern trade, differentiation, exclusivenessParole chiave: assortimenti, competizione, sovrapposizione, distribuzione moderna, differenziazione, esclusivitÀ

Competitive advantage in algorithmic trading: a behavioral innovation economics approach

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricky Cooper ◽  
Wendy L. Currie ◽  
Jonathan J.M. Seddon ◽  
Ben Van Vliet
Keyword(s):  
Competitive Advantage ◽  
Strategic Behavior ◽  
Behavioral Model ◽  
Internal Conflict ◽  
Algorithmic Trading ◽  
Competitive Advantages ◽  
Complex Environments ◽  
Structured Interviews ◽  
Organizational Survival ◽  
Content Type

PurposeThis paper investigates the strategic behavior of algorithmic trading firms from an innovation economics perspective. The authors seek to uncover the sources of competitive advantage these firms develop to make markets inefficient for them and enable their survival.Design/methodology/approachFirst, the authors review expected capability, a quantitative behavioral model of the sustainable, or reliable, profits that lead to survival. Second, they present qualitative data gathered from semi-structured interviews with industry professionals as well as from the academic and industry literatures. They categorize this data into first-order concepts and themes of opportunity-, advantage- and meta-seeking behaviors. Associating the observed sources of competitive advantages with the components of the expected capability model allows us to describe the economic rationale these firms have for developing those sources and explain how they survive.FindingsThe data reveals ten sources of competitive advantages, which the authors label according to known ones in the strategic management literature. We find that, due to the dynamically complex environments and their bounded resources, these firms seek heuristic compromise among these ten, which leads to satisficing. Their application of innovation methodology that prescribes iterative ex post hypothesis testing appears to quell internal conflict among groups and promote organizational survival. The authors believe their results shed light on the behavior and motivations of algorithmic market actors, but also of innovative firms more generally.Originality/valueBased upon their review of the literature, this is the first paper to provide such a complete explanation of the strategic behavior of algorithmic trading firms.

Pricing for New Products

2013 ◽  
pp. 56-74
Keyword(s):  
New Product Development ◽  
New Products ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Product Innovations ◽  
Product Pricing ◽  
Pricing Process ◽  
Product Scope ◽  
Market Needs ◽  
Market Strategies

Pricing strategies specify market needs that may be served by different price offerings. The pricing strategies of the company are duly related to market strategies that eventually come to dominate both the overall strategy and the spirit of the company. Pricing strategies deal with matters such as number and diversity of products, product innovations, product scope, and product design. The implementation of pricing strategies requires cooperation among different groups including finance, research and development, the corporate staff, and marketing. This chapter guides managers as to how to manage the concept pricing process for new product development effectively by the customer centric companies through mapping the consumer perceptions about their needs and expected products. In this chapter, the author describes how companies get customer centric pricing strategy, product pricing, and tactical moves in a way that help the firms to get the competitive advantage and build profits in the future.

Two-Period Pricing with Selling Effort in the Presence of Strategic Customers

2019 ◽  
Vol 36 (03) ◽  
pp. 1950011 ◽  
Author(s):  
Feng Yang ◽  
Junjun Kong ◽  
Minyue Jin
Keyword(s):  
Future Price ◽  
Optimal Pricing ◽  
Enhancement Effect ◽  
Direct Impact ◽  
Market Demand ◽  
Strategic Customers ◽  
Pricing Decisions ◽  
Price Discounts ◽  
Selling Effort ◽  
Second Period

This paper investigates the implications of selling effort upon a monopolistic seller’s optimal pricing decisions and its performance in the presence of strategic customers. In our model, strategic customers can anticipate future price discounts and decide on when to purchase products from the seller over two periods. The direct impact of selling effort is to induce more customers to purchase in the first period. Two pricing policies are under consideration: (i) preannounced pricing under which the seller commits to a price path over two periods in advance; (ii) contingent pricing under which the seller can dynamically set a price in each period. The analytical results demonstrate that preannounced pricing always dominates contingent pricing from the seller’s perspective. Moreover, compared with the results under contingent pricing, selling effort is enhanced but market demand is shrunk under preannounced pricing. Through sensitivity analysis, we further find that when customers become more willing to postpone their purchases to the second period, the seller should reduce its selling effort in the first period if the demand-enhancement effect of selling effort is sufficiently low.

scholarly journals An Analysis of Supermarket Pricing: The Case of Selected Supermarkets in Gaborone, Botswana

2016 ◽  
Vol 8 (2) ◽  
pp. 66
Author(s):  
Sathyamoorthi C.R. ◽  
Mburu P. T.
Keyword(s):  
Pricing Strategy ◽  
Pricing Strategies ◽  
Price Fluctuations ◽  
Intercept Survey ◽  
Price Differences ◽  
Everyday Low Price

<p>The purpose of study is to explore price fluctuations (tracking of pricing trends) in essential consumer items among identified Supermarkets in Gaborone. The prices were read from shop displays at the beginning of the month, mid-month and at the end of the month. A triangulation methodology was utilised as it strengthened and confirmed results. Seven major supermarkets were selected for the study while a mall intercept survey was used to find out the consumer store and brand selection in relation to pricing strategies adopted by the store.</p><p>The study revealed that there were price fluctuations and differences between selected supermarkets during the selected period of study as well as amongst branches within a supermarket. Supermarkets utilised pricing for promotional than other element of retail mix. The results indicate that Promo pricing strategy was preferred by both stores and customers compared to Everyday Low Price (EDLP) and High-Low Pricing. While consumers shopped at the beginning and the end of the month looking at the price, mid-month shopping was done more looking at other retail mix elements. With well-educated customer’s base, EDLP and H/L pricing may not work as customers would be looking for the extras in the retail mix. The findings also indicated that consumers were aware of price differences and engaged in shopping in an opportunistic manner (cherry pickers). </p>

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.

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