Optimal Pricing Strategy In Advance Selling And Group Purchase’s Combination Model With Coupons

The introduction of Ali’s new retail theory and the strong rise of social e-commerce which is presented by Buy Together have brought the entire e-commerce and retail industry to a new stage.Constantly exploring and innovating selling models became the key point for e-commerce platform’s development.In the past,advance selling has brought great success to Ali,JD and other e-commerce platforms during those years’ implementation.But nowadays,group purchase as the new marketing model,has shown its great potential.This paper focuses on Ali’s and Buy Together’s existing rules and regulations of the advance selling and group purchase model.The consumer purchasing utility theory and consumer-to-product Valuation theory are two important theories in order to analyze the pricing problem of compound selling model.This article is discussed from the following three aspects.Firstly,this paper summarizes the relevant literatures on advance selling,group purchases and coupons at local and abroad,combined with the actual operation and characteristics of e-commerce and the utility of consumers.The profit models according to different selling stage are established by using reverse push method.Secondly,this paper is analyzed from two perspectives: the advance selling and group purchase carry out simultaneously;advance selling and group purchase carry out in order.This paper starts from the key parameters analysis in the two-stage and three-stage sales models,and then makes the conclusion of e-commerce’s optimal pricing decisions from those two perspectives separately.Thirdly,this paper makes the sensitivity analysis for four key parameters by using numerical simulation experiments.Those four key parameters are logistics distribution cost,advance selling waiting time,the number of group purchases’ individuals and the value of coupons.Then,discussing the key parameters’ impact on pricing strategies and e-commerce profits.This paper enriches the relevant theories of the new type of group purchase model and innovates the advance selling business model.According to this paper’s exploration,it provides theoretical support for e-commerce compound selling model’s innovation,and contributes to improve e-commerce platform’s development.