Abstract
This paper mainly deals with the problems that online retailers are facing by some group of strategic customers by upgrading web system and goods pricing. A monopolist price of a product for which stylized dynamic pricing model is considered at the beginning and the price change is done on the product after considering some set of constraints based on the product availability. Due to some network issues sometimes website may get problems at that time there may be a chance of transaction failure for customer during online purchasing. To predict this probability and doing purchasing opinion depending on the belief of Transaction Success Probability (TSP).Considering this there will be a threshold policy for purchasing by customers here it is going to consider it as first one: Customers buy products only if his valuation for products is above threshold (total reduced profit) otherwise they will not take it into consideration. The threshold rises as TSP degrades, or customers turn out to be risk averse. Here we obtain the best cost of each phase and make out the best strategy for online shopping site customizing by threshold and upgrade the system when present TSP is less than threshold. The online trader turns to increase the price if he disregards strategic customer behavior. The value of disregarding strategic customer deeds is significant. The profit loss cost of disregarding strategic customer deeds grows as customer transaction cost rises.
Highlights
As of if we consider many retailers are maintain their own online websites for sales and other purposes
Retailers sell’s the product for an affordable price for attracting customers that leads to loss to them [4]. For this we are introducing change in retailing prices and upgrade the web systems to minimize online traders losses occurred through issues occurred through websites. For this first we have to define one threshold value for every period for a group of products by which online traders can upgrade the web system for attaining a handsome Transaction Success Probability (TSP) value only if their present TSP is lesser than Threshold value, else their upgrade is not done
Coming to second method here in this we present steps to the retailers, when to upgrade the system and finding the prices. Coming to this the optional cost for each session should be identified, a threshold policy was declared for upgrading: for this a threshold policy to every session so the online trader shall upgrade the web system for achieving outrageous TSP
Summary
As of if we consider many retailers are maintain their own online websites for sales and other purposes. Retailers sell’s the product for an affordable price for attracting customers that leads to loss to them [4] For this we are introducing change in retailing prices and upgrade the web systems to minimize online traders losses occurred through issues occurred through websites. By following all the methods by which an web site people can upgrade their websites by the help of updated web-site engineers by which we can expand the count of visitors and the time they spend on web site For doing this based upon the customer wants, observing individual desires, we are proposing a well organized model in that the online trader retails a kind of commodity for a class of important customers by net. Received December 12, 2014; Revised February 9, 2015; Accepted February 27, 2015
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