Consider Referring Consumers Rely On Research Methods And Dynamic Pricing Behavior

Many researches in economy and marketing find that consumers makes their purchase decision may not only dependent on the current price of the product, but also dependent on the their own expectation of the price, which called reference price. Reference price’s formulation is based on the past prices of that product. Based on the reference effect we studied the utility functions of strategic consumers and myopic consumers faced two-stage pricing police. After that a two-stage multi-period pricing model with reference effect and consumers’strategic behavior is developed. We also analysis the situation of multi-products, in which consumers’reference effect is in store-level. At last we proposed the model when inventory is taken into consideration.The study has followed major conclusions. First of all, we obtain the close-formed solution of the steady states of the three models. Second, the study shows that loss due to ignoring consumers’strategic behavior is great. The loss is greater when the there are more strategic consumers in the market. Third, consumers’strategic behavior will reduce the long-term profit of the firm. Forth, in the situation of multi-products, the firm can increase her profit by adjusting product structure. At last, when uncertainty exists joint inventory with dynamic pricing is worth the effect.This study has certain theoretical and practical significance. In theory, it remedies the defect of new provides neoclassical economical theory in the aspect of dynamic pricing, as well as provides new insight for the study in supply chain and revenue management. In practice, it provides a better model for retailers’pricing decision.