Retailer's Pricing Strategy Considering Consumer Inertia Behavior Under Advancing Sale Mode

As a new sales mode,advancing sale has more and more application and practice in e-commerce enterprises.Compared with the traditional sales model,the advancing sale model can reduce the degree of information asymmetry between retailers and consumers,which is a win-win mode for both consumers and retailers.With the vigorous development of the Internet and e-commerce enterprises,consumers have more and more channels to obtain information.In addition,e-commerce enterprises provide good return policies due to competitive advantages and policy pressure,which leads to more and more factors affecting consumers'purchase and return decisions,thus making consumers' decisions more strategic.At the same time,the gradual increase of consumer groups also makes consumers'decisions more strategic Some irrational behavior of consumers has become an important factor affecting the decision-making of consumers and retailers.Therefore,taking the consumer behavior as the research subject,analyzing the impact of different consumer behavior on the retailer's pricing decision under the advancing sale mode has become a research topic of great theoretical and practical value.Based on the uncertainty of advancing sale price,this paper discusses the pricing strategies that retailers should adopt under two different consumer behavior types:first,retailer's advancing sale pricing decision when consumers are strategic consumers;second,consumers are part The retailer's advancing sale pricing decision-making problem when the part of strategic consumers is strategic consumers with irrational behavior inertia behavior.In the research process,the advancing sale price and the refund amount of advancing sale goods are taken as variables,and the consumer advancing sale decision-making model is established according to the consumer surplus theory.Based on the assumption that consumers are strategic,the differences of retailer's advancing sale pricing strategies are analyzed after considering consumers' irrational factors' inertia behavior.At the same time,combined with the classical newsboy model,the total order quantity and the total expected profit are expressed,and the differences between them under different types of consumers and the numerical and logical relationship between them and the advancing sale price refund amount are discussed.It provides more scientific guidance for retailers to make decisions based on consumer behavior,which makes the model more consistent with the display decision situation.Through the research of this paper,we can express the optimal advancing sale price,the optimal refund amount of advancing sale goods,the optimal order quantity and the maximum expected profit of the retailer under the conditions of rational strategy and partial inert behavior.The results show that when the optimal refund amount of advancing sale goods is a fixed value related to the purchase cost,inertia breadth and inertia depth,the retailer obtains the maximum expected profit;this proves that the optimal refund amount of advancing sale goods has nothing to do with the return strategy adopted by the retailer,but is a positive function of purchase cost and depth of inertia,and is an inverse function of inertia breadth.After considering the irrational behavior factor of inertia behavior,it is proved that the retailer should set a higher advancing sale price and a higher refund amount of advancing sale goods,so as to obtain the maximum expected profit compared with the model which only assumes that consumers are strategic.Then,by comparing the optimal order quantity of the two models,it is concluded that:when the retailer's inert behavior factors such as necessities have less influence on the advancing sale purchase decision than on the cash return decision-making,the retailer should increase the order quantity so as to increase the profit;on the contrary,when the sales product type is luxury goods,the order quantity should be reduced so as to reduce the inventory cost and overbooking loss.Finally,this paper makes a numerical analysis of the relevant parameters based on MATLAB,and gives the more in-depth numerical value and logical relationship of the relevant variables.For the analysis of retailer pricing strategy considering consumer inertia,there are still many shortcomings in this paper:from the perspective of consumer behavior,this paper assumes that consumers are homogeneous,that is,strategic consumers' risk preference is risk neutral;and for the description of inertia behavior,it also assumes that the breadth and depth of inertia are simple parameters.In real life,the breadth of inertia should be a function related to consumers' income and commodity types,while the depth of inertia should be a piecewise function related to income.In addition,this paper assumes that the retailer is a monopoly retailer,and does not consider the competition problem of multiple retailers in the market.Therefore,the future research will deeply describe the inert behavior and consider the market competition factors,so as to improve the decision-making model and improve the scientificity and practicality of this paper.