Dynamic pricing for new experience products in pre-sale mode with social learning

Lu, Danning; Wang, Pengyu

doi:10.1016/j.jretconser.2023.103569

Cited by 3 publications

(2 citation statements)

References 40 publications

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“…Duary et al [ 12 ] study the use of immediate price discounts by manufacturers against prepayment with the purpose of incentivizing retailers to preorder goods and reducing market uncertainty. Lu and Wang [ 13 ] analyze the pricing problem of new products for consumers with social learning ability under the presale mode. Yu and Yan [ 14 ] examine the manufacturer’s choice of a presale strategy to sell seasonal products to consumers under uncertain supply and demand.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Noori-daryan et al [10] examined the behavior of two complementary enterprises in the airline and hospitality industries using advance reservation policies when partial refunds were allowed. Current research on presale strategy focuses primarily on presale pricing [11][12][13], capacity and inventory [14][15][16], return policy and consumer presale regret [17,18] and other presale-related issues [19][20][21]. Zhang et al [11] shows that under the presale mode of new products, the influence of reference price on the presale decision and pricing.…”

Section: Presale Strategymentioning

confidence: 99%

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Selection of presale models for innovative products considering channel preferences and valuation differences

Jiang,

Qin,

Zuo

et al. 2024

PLoS ONE

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To reduce financial pressure and operational risk, and improve match between supply and demand, an increasing number of enterprises are adopting presales to launch new products. In this context, this paper investigates three presale models for innovative products, namely, the no-presale model, the manufacturer presale model and the retailer presale model. A Hotelling model is used to describe the impact of channel preferences and valuation differences on the two-stage competition between innovative products. Aiming at evaluating the purchase behavior of consumers under three presale modes, a game optimization model is established to analyze the presale decision problem for innovative products under different presale entities. The research shows that: (1) Compared with no-presale, presales can help enterprises obtain more profits. The overall profit of the supply chain is optimal under the retailer presale mode. (2) When the difference in channel preferences is small, the manufacturer obtains the greatest profit by choosing the direct presale model. In contrast, the selection of different presale entities has a significant impact on product sales and supply chain enterprise profits. At this point, the manufacturer should choose the retailer presale model. (3) When the product valuation discount is high, the manufacturer can increase the spot and wholesale prices to induce consumers to choose the presale method to purchase the product. In the opposite situation, the manufacturer should lower the presale price to improve the presale utility of consumers and encourage them to participate in the presale. These conclusions provide more targeted suggestions for enterprises to formulate presale strategies, which can help them grasp market demand and improve market competitiveness.

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Section: Literature Reviewmentioning

confidence: 99%