Dynamic pricing in the presence of reference price effect and consumer strategic behaviour

Chen, Kehong; Zha, Yong; Alwan, Layth C.; Zhang, Lu

doi:10.1080/00207543.2019.1598592

Cited by 78 publications

(55 citation statements)

References 59 publications

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“…(1) A dynamic pricing model for a one-echelon supply chain with a monopoly (monopolist) firm [13][14][15][38][39][40][41][42] or oligopolistic competition firms [43][44][45] in the presence of strategic consumers, and (2) a dynamic pricing model for a decentralized supply chain in the presence of strategic consumers [16,17]. The presence of strategic consumers is detrimental to the retailer [38] and the seller would lose profits without paying attention to the presence of strategic consumers [14,15,39,43].…”

Section: Literature Reviewmentioning

confidence: 99%

“…In addition, a low-quality firm suffers substantially more than a high-quality firm when customers become more strategic under competition [44]. When strategic consumers extend to a decentralized supply chain [16,17], the profit of a centralized structure with one seller may not always gain more than a decentralized structure with a two-echelon supply chain in the presence of strategic consumers because of the reference price effect [17] or quantity commitment and price commitment [16]. However in a study of them, the value reduction and volume reduction of the products are not taken into account.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The structure of the problem is described in Figure 2. The total market size is normalized to 1 [17,55]. Strategic consumers make purchases between the two periods of the sales horizon to maximize their expected utilities.…”

Section: Problem Descriptionmentioning

confidence: 99%

“…Strategic consumers make purchases between the two periods of the sales horizon to maximize their expected utilities. It is assumed that fresh agricultural products are completely available to all buying customers [17]. So for a strategic consumer, the utility of buying an item in the second period is discounted by a homogeneous discount factor δ, which can be interpreted as the level of strategic behavior [16,17,43].…”

Section: Problem Descriptionmentioning

confidence: 99%

“…Most model studies about pricing in the presence of strategic consumers are one-echelon supply chain with one monopoly firm or oligopolistic competition firm. There are few models that study a decentralized supply chain in the presence of strategic consumers [16,17]. Even in the study of them, the value reduction and volume reduction of the products are not taken into account.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Fresh Agricultural Products Supply Chain Coordination and Volume Loss Reduction Based on Strategic Consumer

Qiu

2020

IJERPH

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The reduction of fresh agricultural product volume loss throughout the supply chain system is of high importance due to their perishable nature and impact on society, the economy, and environment. In this paper, three models for two-stage pricing, coordination, and volume loss reduction of the supply chain where third-party logistics service providers and retailers act as a Stackelberg leader and a follower for fresh agricultural products are developed, taking into account both volume loss during transport and quality loss in retail in the presence of strategic consumers. The following results are drawn from the contract for sharing revenues and service costs: (1) The supply chain achieve coordination and the products are healthier for consumers; (2) the coordination leads to a reduction in the three types of volume losses simultaneously only if the lowest marginal costs of the supply chain occur under certain conditions; and (3) the increase in the service sensitivity coefficient, the increase in the freshness discount coefficient under certain conditions, the decrease in the consumer benefit discount coefficient under certain conditions, and the decrease in the price sensitivity coefficient lead to an increase in the profit of the supply chain and a reduction in the three types of volume losses.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Problem Descriptionmentioning

confidence: 99%

Section: Problem Descriptionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Fresh Agricultural Products Supply Chain Coordination and Volume Loss Reduction Based on Strategic Consumer

Qiu

2020

IJERPH

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Exploring the price anchoring effect in mobile commerce: An experimental study

Lin

Chen

2022

Manage Decis Econ

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This study explores the influence of external reference price and store brand awareness on consumers' internal reference price, transaction utility, purchase intention, and search intention in mobile commerce. A 3 × 2 two‐factor experimental design for both utilitarian and hedonic products was adopted to collect the sample data. A total of 189 valid responses were analyzed using a MANOVA approach. The results indicate that for the utilitarian product context, external reference price affects consumers' internal reference price, transaction utility, and purchase intention but does not affect search intention and that store brand awareness affects consumers' internal reference price, transaction utility, purchase intention, and search intention. Further, store brand awareness has a moderating effect on the relationship between external reference price and internal reference price. For the hedonic product context, external reference price affects consumers' internal reference price and transaction utility but does not affect purchase intention or search intention, while store brand awareness affects consumers' internal reference price, transaction utility, purchase intention, and search intention. Also, store brand awareness has a moderating effect on the relationship between external reference price and search intention. These findings provide several important theoretical and practical implications for mobile commerce pricing decisions.

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