Analysis of Product Rollover Strategies in the Presence of Strategic Customers

2011 ◽  
Author(s):  
Chao Liang ◽  
Metin Cakanyildirim ◽  
Suresh Sethi
Keyword(s):  
Strategic Customers

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.

Dynamic Product Rotation in the Presence of Strategic Customers

2017 ◽  
Vol 63 (7) ◽  
pp. 2092-2107 ◽  
Author(s):  
Fernando Bernstein ◽  
Victor Martínez-de-Albéniz
Keyword(s):  
Strategic Customers

Cooperative advertising to induce strategic customers for purchase at the full price

2017 ◽  
Vol 26 (6) ◽  
pp. 2248-2280 ◽  
Author(s):  
Amir Farshbaf‐Geranmayeh ◽  
Masoud Rabbani ◽  
Ata Allah Taleizadeh
Keyword(s):  
Cooperative Advertising ◽  
Strategic Customers

scholarly journals Robust Dynamic Pricing with Strategic Customers

2018 ◽  
Vol 43 (4) ◽  
pp. 1119-1142 ◽  
Author(s):  
Yiwei Chen ◽  
Vivek F. Farias
Keyword(s):  
Dynamic Pricing ◽  
Strategic Customers

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.

Analysis of Product Rollover Strategies in the Presence of Strategic Customers

2014 ◽  
Vol 60 (4) ◽  
pp. 1033-1056 ◽  
Author(s):  
Chao Liang ◽  
Metin Çakanyıldırım ◽  
Suresh P. Sethi
Keyword(s):  
Strategic Customers
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