Express Service Pricing Research Based On Customer Perceived Value

The express market competition mainly includes two aspects:one is the service level of competition, the other is pricing competition, and the former is the most prominent problem at this stage in the express service market. Now many express enterprises take the low price competition strategy to expand their market demand. This way of vicious price competition leads that the price of express service is too low in the whole express industry and the profit space of all express enterprise is becoming smaller, otherwise lower price can’t guarantee the quality of express service, so customer demand can’t be satisfied, and then lead to the increase of customer complaint. So we can see that price competition of express service now has damage the interests of both enterprises and customers.The price of express service is vital for the development of express enterprise, and directly affects the choice of customers for express service, so it is a hard nut to make a reasonable price level that express enterprise is facing. The traditional pricing methods center on express service of cost, competition or demand from the view of express enterprise. But as a special service product, express service has its own features. In the process of service, there is frequent interaction with customers, customers’evaluation about its function, timeliness, safety etc, forms customer perceived value from express service, and this is the measurement of express service value that customers have acquired from a customer’s perspective. Perceived value represents customers’ repurchase intention and the strong degree of willingness to pay for express service. When customers choose the provider of express service, they are apt to express service from which they can perceive more value if the price of express service is equal. Thus it can be seen that customer perceived value lead to the variation of express service demand by effecting customer purchasing behavior. So customer perceived value is an important and indispensable factor in the process of express service pricing.This research began with the concept and features of express service and customer perceived value, and analyzed pricing fundamentals of express service including pricing objective and general factors which effect express service pricing, then focused to explain the interaction between express service price and customer perceived value and the formulation of express service price based on customer perceived value. Based on these theories, this research established the measurement dimensions of express service’s customer perceived value, then analyzed the influence factors of every dimension, and used factor analysis method to qualify express service’s customer perceived value based on empirical research. Then this research established the price competition basic model for express enterprise based on Bertrand model, afterwards put forward the concept of relative customer perceived value according to the qualitative result of express service customer perceived value, then introduced customer perceived value to the price competition basic model and done model solution and extension. Lastly this research chosen two express enterprises, by calculating their customer perceived value and estimating other parameters of price model, to test the applicability of express service pricing model. Results indicated that enterprise which has higher customer perceived value can obtain more market shares and profit level, and express service pricing model based on customer perceived value can provide the reference to express enterprises, and has a certain practice value.