Optimal Pricing Strategy In Advance Selling With Freebies

In recent years,more and more online retailers emerge continually and develop rapidly.Online shopping is different from traditional retail.And it has attracted many consumers because of its advantages,such as convenience,variety,cheapness and so on.With the change of consumers' shopping way,online shopping has become a very popular consumption patter.Faced with this change,online retailers realize huge market potential and use a variety of marketing strategies to attract consumers.Presale is one of the most popular sales strategies.Based on consumers' value and considering the characteristics of pre-ordering in the electronic business platform,the research studies the optimal pricing problems under the advance selling strategy with freebies.The online retailers' sales activity and payment mode are discussed under the aim of maximizing its profit.In this paper,freebie has an effect on consumer's utility and demand.Consumers'value is discussed from two dimensions and is analyzed quantitatively.Then the relationship between consumers' value and consumers' behavior is studied.In the process of research,it combines with the consumers' utility function and sets up the profit model by using the hysteron proteron.And then it obtains the optimal price and optimal profit in two stages.Different models are compared in order to achieve optimal sales strategies for the online retailers under different situations.Finally,the research shows some factors' influence on the price and the profit by using numerical simulations.Based on the reality,the research can provide theoretical basis for electricity suppliers' sale pricing,and enrich studies on the strategies of advance selling with freebies,which is of theoretical and practical significance.