Study On Apparel Pricing And Inventory Decision Considering Strategic Consumer Behavior

As seasonal clothing merchandise possesses obvious characteristics of perishable goods,due to surplus value of unsold goods after the normal sales is usually low and it is difficult tohave the opportunity for continuing selling, retailers will often discount apparel commodityprices to get more profit in the case of which some consumers also have a tendency to delay thepurchase in order to obtain low-cost commodities. Strategic consumer performance is differentfrom the characteristics of consumers in that they will be based on their own rational judgmentfor clothing consumption, i.e., having their anticipation for the retailer’s pricing and inventorystatus, weighing their consumer surplus under different buying opportunity so as to make thepurchase option. For retailers, the neglect of strategic consumer behavior will make itsdivergence in economic decisions, which would cause great economic loss. Therefore, theresearch of the clothing enterprise decision and the caused impact as well as measures to take inthe presence of consumer behavior has important theoretical and practical significance.On the basis of previous studies and through in-depth analysis of the constitution ofconsumer groups in clothing consumption market and the interactive relationship betweenretailer’s marketing decision and consumer behavior, this paper distinguishes consumer type andintroduces the existence of strategy consumer behavior factors into the demand modeling, thusstudying the retailer pricing, inventory decision and its sales profit status under different demandpattern according to the composition of the consumer groups considering strategic consumerbehavior.First of all, to take the deterministic demand pattern as the background and on the basis ofthe existing literature research, establish the revenue function model using the utility function asa reference of consumer strategic purchase choice behavior, proceeding the mathematicalderivation of the model, as well as adopting numerical simulation analysis according to the builtmodel. Secondly, consider the case of consumer heterogeneity and non-single type compositionof consumers and discuss the manner of strategic consumer behavior in random demand mode,and then come to the retailer’s expected profit model, obtaining the retailer’s pricing and inventory decisions through the model solving. Then, in view of the current market generallytakes a limited supply model as one of the measures to cope strategic consumer behavior, thepaper continued to study the retailer’s operating performance under limited supply mode.Furthermore, based on the setting of limited supply mode, discuss the profit maximization modelfor the retailer who has a quick replenishment opportunity under the situation of which thecorresponding operational strategy formulation is analyzed. Finally, make a review and summaryof the research content of this paper, analyze its research results as well as point out thelimitations of the study in out-looking possible future research directions.This paper makes a research on the retailer’s pricing and inventory decision makingproblems from the perspective of behavioral science, achieving the extension and expansion ofexisting model to a certain extent. Through this study, the retailer can have a betterunderstanding of the characteristics and the influence of strategic consumer behavior so as toformulate effective response and mitigation strategies, ultimately helping them to achieveoptimum marketing objectives.