Price–quality relationship in the presence of asymmetric dynamic reference quality effects

Gavious, Arieh; Lowengart, Oded

doi:10.1007/s11002-011-9143-4

Cited by 77 publications

(60 citation statements)

References 20 publications

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“…Moreover, product quality directly determines the price of the product and is always closely linked to the price. Gavious and Lowengart [16] considered a case in which the reference quality was a state variable to investigate the players' pricing strategies. Zhang et al [20] proposed dynamic and static pricing strategies in both centralized and decentralized scenarios with advertising taking reference quality effects into consideration.…”

Section: Dynamic Pricing Strategymentioning

confidence: 99%

“…Accordingly, in accordance with firms' practice in management, the relationship between the price and the dynamic quality strategy characterized by reference quality effects could not be neglected. Gavious and Lowengart [16] proposed an asymmetric and contractual agreement and investigated the impacts that the price and reference quality had on profits. Liu et al [45] studied the reference quality effects combined with a revenue sharing contract in myopic and far-sighted scenarios.…”

Section: Reference Quality Effectmentioning

confidence: 99%

“…Decentralized and centralized decision-making models are two predominant mainstreams in supply chain management [15,16,20]. Although the product quality and the reference quality invariably change with time, alternative pricing strategies can be selected for the manufacturer and the retailer-one is a time-varying pricing strategy and another is pricing statically.…”

Section: Model Descriptionmentioning

confidence: 99%

“…As such, solving the derivatives of R(t), that is dR(t)/dt or • R(t), we employ an exponential smoothing process of this historical quality to characterize the dynamics of reference quality, as follows, which is seen in research [16,27,45].…”

Section: Model Settingmentioning

confidence: 99%

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Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects

et al. 2018

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Abstract:Remanufacturing of returned products has been increasingly recognized in industries as an effective approach to face environmental responsibility, government regulations, and increased awareness of consumers. In this paper, we address a closed-loop supply chain (CLSC) in which the manufacturer produces the brand-new products, as well as the remanufactured goods while the retailer sells these products to customers. We consider several different scenarios: the manufacturer and the retailer adopt a steady-state price or a dynamic price with reference quality effects in a centralized case; either, neither or both the manufacturer and the retailer price dynamically with reference quality effects, respectively, in a decentralized model. We solve the problem with the retailer recycling the sold copies and deduce the optimal pricing strategies while the manufacturer in charge of recovering the used items in such a CLSC. The result shows that dynamic pricing strategies are much more profitable for the supply chain and its members when compared with pricing statically; the dynamic pricing strategies with time-varying quality characterized by reference quality are more suited to a long-term and cooperative closed-loop supply chain. Moreover, the optimal recycling fraction relies on the recovery cost coefficient and proves to be uniform despite adopting a dynamic price and quality in all distinct cases.

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Section: Dynamic Pricing Strategymentioning

confidence: 99%

Section: Reference Quality Effectmentioning

confidence: 99%

Section: Model Descriptionmentioning

confidence: 99%

Section: Model Settingmentioning

confidence: 99%

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Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects

et al. 2018

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“…Similar to [32], the cost function of greenness efforts is quadratic with respect to green degree as specified by:…”

Section: Model Developmentmentioning

confidence: 99%

Analysis of Supply Chain under Different Subsidy Policies of the Government

Guo

et al. 2016

Sustainability

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Abstract:The increasing public attention on green products prompted firms and government to focus on the design and manufacturing of these products. This study focuses on a supply chain system that consists of three members, namely, supplier, manufacturer, and government, and then investigates the effects of government subsidies on social welfare and the profits of supply chain members. We utilize game and optimization theories to calculate and compare the optimal decisions and profits of players in the following scenarios: (i) the government provides a subsidy rate to the cost of manufacturer's greenness efforts (first subsidy policy); and (ii) the government grants a per unit subsidy to the manufacturer for the demand for green product (second subsidy policy). We also derive the necessary condition for the most effective subsidy policy that maximizes expected social welfare and profits. Our analysis derives the following findings: (i) under the first subsidy policy, the government tends to provide high subsidy rate to a manufacturer with low marginal profit; (ii) under the second subsidy policy, the government tends to offer low subsidy to a manufacturer with low marginal profit; and (iii) a government's selection of subsidy policy depends on the sensitivity of consumers to price.

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The effect of the inspection information sharing policy on quality‐oriented food production in online commerce

Zhai

Han

2021

Manage Decis Econ

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Food products are normally classified as credence goods, and their quality cannot be fully ascertained by consumers even after being consumed. Online commerce exacerbates information asymmetry, which breeds a market filled with low‐price and poor‐quality food products. This study aims to examine whether certificate authority's inspection information sharing policy (IIS policy) can improve food quality in online commerce. The results suggest that producers tend to provide high‐quality food products, whereas both the online platform and food producers can earn more profits by adjusting selling price and commission fees under the IIS policy. Meanwhile, consumers also benefit from IIS policy.

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Price–quality relationship in the presence of asymmetric dynamic reference quality effects

Cited by 77 publications

References 20 publications

Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects

Static and Dynamic Pricing Strategies in a Closed-Loop Supply Chain with Reference Quality Effects

Analysis of Supply Chain under Different Subsidy Policies of the Government

The effect of the inspection information sharing policy on quality‐oriented food production in online commerce

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