Research On Pricing Decision Of Products In Supply Chain And Add-on Under The Heterogeneity Among Consumers

Many in the industry,the value of the base product is greatly affected by the non-price factors,the traditional competitive strategy in the market have been unable to adapt to the changing needs of consumers,more and more companies will look on the products of additional services,enterprise to consumers for the additional service of product to increase its utility,make consumers to purchase products and additional services to obtain the function of the product itself and the effect of additional service.Based on the theories of supply chain management and additional services,this paper studies the optimal pricing decisions of basic products and additional services in different situations by taking into account the heterogeneity of consumers and market segmentation.First,consider that under the horizontal strategy of supply chain,two manufacturers provide asymmetric basic products to consumers,and the dominant one also provides additional services.At the same time considering the consumers to buy additional services exist differences,will consumer market segmentation,Hotelling model on consumer utility,manufacturers identify two additional service marketing strategy,respectively from the two cases,study the influence factors and its products manufacturers profit the optimal pricing and additional services strategy.It is found that the poor utility of basic products,the utility of additional services and the consumer range are all the influencing factors for the manufacturers to choose the additional service sales strategy.Secondly,on the basis of the foregoing,this paper studies two manufacturers manufacturing basic products of the same quality and providing asymmetric additional services at the same time,and considers two market situations in which consumers choose to buy only basic products or purchase additional services at the same time.The two manufacturers can choose to adopt the additional service compatibility strategy or the additional service specific strategy,and study which standardization strategy is more advantageous for the two manufacturers to adopt in their basic products and accessory services,as well as the optimal pricing decision of the supply chain.It is studied that the manufacturers with higher quality of additional services can increase the demand of their basic products by adopting additional services to establish proprietary standards.For the party with low quality of additional services,the relative weakness of additional services will further affect the competition of basic products and reduce the demand for basic products,so it is more willing to adopt the strategy of compatibility of additional services.Finally,vertical strategic implications for supply chain,set up two vendors downstream supply chain model of a retailer,one of the supplier base product,another supplier to provide additional services,respectively,decided to base product wholesale price and additional services,then selling through downstream retailers,retailers determine its selling price.Here considering the independence of the additional services can buy separately,will further subdivided in front of the consumer market,and retailers choose according to different market to identify the two kinds of products and additional services sales strategy,discussed under the condition of different supply chain which is formed by the retailer’s pricing decision and pricing equilibrium,the study found that the base product and additional services relative utility ratio and the degree of complementary is what factors that affect the pricing strategy for retailers,and retailers under the pricing strategy of products and additional services form the basis of pricing equilibrium depends on the manufacturer wholesale prices of products and additional services.