A Research On Bundling Pricing Strategy Based On Genetic Algorithm

In market economy, the price is a key competition means, so enterprise must correctly utilize the pricing strategy; the research on pricing strategy has been extremely significant. This thesis critically reviews the existed studies on bundling part of pricing theory for enterprise with market power, and points out the limitation of those studies. In view of those limitations, this thesis employs the computer simulation technique, which was regarded as a formidable research approach, to research bundling pricing strategy. In view of the particularity of the solution of optimization during the study process, this thesis selects the genetic algorithm as the optimization tool.This thesis thinks the main factors that influences whether a enterprise adopts the bundling pricing strategy are: the size of the average consumer's reservation price to product, the size of unit variable cost of product, the size of variance of consumer's reservation price to product, the correlational dependence between (among) consumer's reservation prices to products, whether the combination of products can produce additional value. These factors will appear in the form of parameter in the experiment model. The to-be-analyzed pricing strategies of bundling have three kinds: respective sale, pure bundling and mixed bundling. Using the Matlab programme, this thesis established purchase decision model and corresponding optimization model respectively for three kinds of bundling pricing strategy.Through the simulation of consumer's purchase behavior and the contrast analysis between defferent model parameter evaluations, the main conclusion which this thesis obtains is: the unit variable cost is the key influence factor of bundling; that the unit variable cost is low compared to average consumer's reservation price to product is the decisive condition. This condition meeted, even if the consumer's reservation prices to two products are positively correlative, bundling is also advantageous. That the consumer's reservation prices to two products are negatively correlative is...