Behavior-Based Pricing For New And Old Users

With the development of big data technology,enterprises can obtain user information by tracking account,equipment,IP address and other technologies,and use the information to understand their own users and market better,and promote products more precisely.It is more common for enterprises to judge whether the user is a new user or an old user by analyzing the historical information of user purchase,and adopt different pricing strategies for different types of users,which is called behavior-based pricing(BBP).In the face of fierce competition,some enterprises adopt preferential prices for new users to attract users to transfer from competitors,and some enterprises adopt feedback activities for old users to keep old users from being plundered by competitors.It can be seen that the new and old users' discriminatory pricing strategies have different applications in different enterprises.Under different competition situations,should enterprises adopt the unified pricing strategy or behavior-based pricing strategy?Enterprises should implement preferential measures for new users or old users under different competition situations?Based on the above problems,we collect and collate the literature of domestic and abroad.This paper uses game theory and other ideas to build a two-stage dynamic pricing model under the background of duopoly market,to explore the choice of discriminatory pricing strategy and unified pricing strategy for new and old users in horizontal and vertical industries,and calculate the optimal pricing,profit and market share of enterprises under different strategy choices.The main conclusions are as follows:(1)Under the background of horizontal differentiation competition,when enterprises promise to implement the new and old user discrimination pricing strategy,they tend to adopt a lower price strategy for new users,and the larger the market share in the first stage,the lower the price strategy for new users.(2)Under the background of horizontal differentiation,no matter what kind of pricing strategy competitors choose,unified pricing strategy is the dominant strategy of enterprises.(3)Under the background of vertical differentiated enterprise competition,one-sided implementation of discriminatory pricing strategy should implement a lower price strategy for new users.When both parties implement the discriminatory pricing strategy,the implementation of lower prices for new users can bring additional profits in most cases,unless the competition is very adverse to itself(the quality-adjusted cost is large enough or small enough),then the company should implement lower prices for old users to keep old users from being captured by competitors.(4)In the context of vertical differentiated enterprise competition,when one party promises to implement the unified pricing strategy first,unless the quality-adjusted cost is large or small enough,the other side should also choose the unified pricing strategy;when one party promises to implement behavior-based pricing strategy first,the other side should judge whether it has competitive advantage according to the quality-adjusted cost.The party should implement behavior-based pricing strategy if it has competitive advantage and should implement the unified pricing strategy if it does not have competitive advantage.