Full-Text Search:
Home|Journal Papers|About CNKI|User Service|FAQ|Contact Us|中文
《Chinese Journal of Management Science》 2016-01
Add to Favorite Get Latest Update

Pricing and Inventory Decisions with Inventory-Dependent Salvage Value,Strategic Consumer Behavior,and Customer Heterogeneity

WANG Xia-yang;FU Ke;YU Bin;Lingnan(University)College,Sun Yat-sen University;  
In this paper,the impacts of strategic consumer behavior on a retailer's pricing and inventory decisions are studied.Most of the literature on strategic consumer assumes that consumers are all strategic and the salvage value is a constant.The joint effect of heterogeneity of consumer type and inventory-dependent salvage value under the general framework of strategic consumer behavior are considered.In particular,the salvage value depends on leftover inventory at the end of a selling season.The rational expectations equilibrium in the base model is characterized and the model with the considerations of quantity commitment,inventory-dependent salvage value,and customer heterogeneity is extended.When consumers are all strategic and are aware of how the product is salvaged,the retailer's expected profit can be improved and inventory can be decreased with quantity commitment are shown.When consumers are heterogeneous,the retailer can use two pricing strategies,i.e.reservation price and valuation price.The retailer's maximum expected profit will positively relate to the ratio of myopic consumers to all consumers when it employs valuation price strategy.Moreover,there exists a threshold ratio,above which the valuation price strategy dominates the reservation price strategy,and vice versa.Our study provides several new managerial insights on how firms could optimize their profits when faced with strategic consumers.
【Fund】: 国家自然科学基金资助项目(71102101 71472191 71072090 71222105)
【CateGory Index】: F274
Download(CAJ format) Download(PDF format)
CAJViewer7.0 supports all the CNKI file formats; AdobeReader only supports the PDF format.
©2006 Tsinghua Tongfang Knowledge Network Technology Co., Ltd.(Beijing)(TTKN) All rights reserved