Research On Dynamic Pricing Of Single Product Based On Strategic Consumers

The price of a product is the constant theme of the retailers,which decides the profit of the enterprise directly.With the development of the technology and the promotion of innovation,the product life cycle is shortened.If the product is out of style,the value will be much lower than before.so the traditional pricing strategies is out of date.As the consumers become more rational,they will not buy the product immediately when in face of the right goods.They will arrange the right time to buy the product,according to the pursuit of maximum consumer surplus.The consumers will form rational expectations by observing the retailer's discount strategy and inventory status.The consumers are so called strategic consumers.If the retailers neglect the delayed purchase behavior of strategic consumers,they will face huge loss of revenue.According to the segmentation of consumers,dynamic pricing is based on the flexible price to meet more consumers,which will alleviate the influence of the delayed purchase behavior and increase the profit of the retailers.When the consumers demand is fixed,we consider that there will be a risk of the consumers to be unable to buy the product in the discount period according to the limited inventory.Now,we build the dynamic pricing model with a new logic.we add a discount coefficient in front of the product value and compare the consumer surplus in the two periods.At each stage,we try to figure out the number of the consumers who buy products according to analyze the behavior of the consumers.We try to construct the retailers' profit function.The retails always try to maximize their profits.Then we try to figure out the optimal dynamic pricing strategy and the profit of the retailers according to the pursuit of profit maximization.Then we analyze the importance of information transparency in the stackelberg game of the retailers and consumers according to the two period dynamic pricing model.we point out that price compensation mechanism is able to alleviate the effect of the strategic consumers.According to the dynamic pricing model established in this paper,we do the numerical analysis.We try to figure out the optimal dynamic pricing strategy of the retailers,which is to achieve the combination of theory and application,and to provide a new way and reference for the retailers to make price decision.On the basis of numerical simulation,we analyze the influence of the variable parameter in the model,such as the probability that a consumer can buy a product at a discount and the utility ratio of the product in the two stages.We try to find the relationship between the variable parameter and the optimal pricing strategy and total earnings of the retailers.Then according to the influence of the variable parameters,we put forward some suggestions for the retailers to make pricing decision.Finally,we point out the main conclusions of this paper and list some directions of the dynamic pricing model for further study in the future.