Study On Pricing Strategies Of P Roducts When Facing Strategic

The formulation of pricing strategies is always an important issue in revenue management, and effective pricing strategies can increase the enterprise’s profit. Researchers have paid much attention to strategic consumer behavior when they study the pricing strategies of perishable products. Now many consumers are active decision makers and respond strategically to underlying economic mechanisms. For example, the consumers may not choose to go to buy the products if there are stockouts, or the consumers may wait to buy the products if the products will be sold on sale in the future. These consumers are called strategic consumers. In the previous studies, all the consumers are assumed to be myopic consumers, neglecting that there are strategic consumers. However, strategic consumer behavior has an important impact on the profit of the enterprise in reality. Therefore, making proper pricing strategies plays a great role in increasing the profit of the enterprise when there are strategic consumers in the market.Based on the phenomenon in the reality, and the summarization of the researches of dealing with the strategic consumer behavior, game theory and incentive theory, this paper proposes new pricing strategies to effectively improve the profit of the enterprise from two different aspects, i.e., the aspect of product availability and the aspect of the change of the product’s price.First, from the aspect of product availability, this paper studies how to make effective pricing strategies to induce all the strategic consumers and enhance the profit of the enterprise when there is an enterprise with a limit budget selling products in a single period and consumers may experience stockouts. On the basis of the model of the basic pricing strategy, this paper proposes the differentiated compensation strategy. When adopting the differentiated compensation strategy, before the products are sold, the enterprise commits that the high-cost type consumers will receive compensation if they encounter stockouts while the low-cost type consumers will receive nothing if they encounter stockouts. Then the basic pricing strategy and the differentiated compensation strategy are compared under both the case of an infinite budget and the case of a finite budget, and the optimal strategy of the enterprise is also pointed out in different cases. What is more, the paper proposes the differentiated compensation strategy to further improve the profit of the enterprise. That is. the enterprise commits that all the consumers experiencing stockouts will receive compensation, but different types of consumers receive different compensationSecond, from the aspect of the change of the product’s price, this paper investigates effective pricing strategies to improve the profit of the enterprise when the products are sold in two periods with markdown mechanism and there is no risk of stockouts in the regular selling seasoa The model of the basic strategy is build up in the beginning, and the paper proposes the strategy of reservation with additional money. The latter strategy is implemented as follows:in the beginning of the first selling season, the enterprise announces that the consumers can get the priority of purchasing the product sold in the second period if they can pay some fees in the first selling seasoa The purpose of this strategy is to employ the waiting behavior of strategic consumers rather than eliminate it. After analyzing the two strategies, the best choice of the enterprise in different cases is given.In the process of this study, based on the current research results, this paper proposes three effective pricing strategies to cope with strategic consumer behavior. The results derived from this paper can give some managerial insights for the enterprise.