Flexible-price Model Research Articles

Research on Precision Marketing Strategies of Chinese Commercial Banks under the Background of Internet Finance

With the rapid rise of Internet finance, China's commercial banks are entering a new era full of challenges and opportunities. This paper makes an in-depth analysis of the current market environment of commercial banks, and systematically evaluates the core advantages, weaknesses to be solved, potential development opportunities and severe threats of banks in the context of Internet finance with the help of a comprehensive SWOT analysis. Based on the detailed analysis results, this paper further introduced the 4p marketing framework and created a series of targeted and effective marketing strategies for commercial banks. In terms of pricing strategy, banks need to implement more flexible pricing models to stabilize and enhance their competitive position in the fierce market competition. At the distribution level, it is necessary to integrate online and offline channel resources and strive to create a seamless omni-channel service network. As for promotion, it is recommended to vigorously promote data-driven precision marketing strategies, and strive to improve customer experience at the same time, but also effectively enhance the brand's market awareness and influence.

Innovative Management Strategies and Competitive Advantage of Global System for Mobile Communication (GSM) Service Providers in Taraba State, Nigeria

This study investigates the effects of product, service, process, and technological innovations on the competitive advantage of GSM service providers in Jalingo, Taraba State, Nigeria. It aims to determine how these different types of innovations influence market positioning and operational efficiency within the regional telecommunications sector. The research is framed using Dynamic Capabilities Theory, which emphasizes the role of strategic adaptability and resource reconfiguration in achieving and sustaining competitive advantage in rapidly changing markets. Employing a mixed-methods approach, the study integrates quantitative data from structured questionnaires distributed to 115 staff across major telecom providers and qualitative insights from industry reports. A total of 102 responses were analyzed using regression analysis in SPSS to evaluate the effect of innovation types on competitive advantage. The findings reveal that all types of innovation—product, service, process, and technological—significantly enhance the competitive advantage of GSM providers in Jalingo. Service innovation showed the strongest effect, followed by technological, product, and process innovations. The study underscores the critical importance of a holistic innovation strategy that includes diverse forms of innovation to improve competitive advantage. GSM providers in Jalingo who embrace comprehensive innovation strategies are more likely to secure greater market share and achieve long-term profitability. The study recommends that GSM service providers should prioritize developing new service offerings and enhancing existing services. This could include investing in customer relationship management systems to personalize services, implementing loyalty programs, or introducing flexible pricing models that cater to different customer segments.

Energy shocks as Keynesian supply shocks: Implications for fiscal policy

This paper analyses the economic impact of and the optimal policy response to energy supply shocks in a flexible price model with heterogeneous households. We introduce energy as a consumption good on the demand side and as an input to production on the supply side. A distinguishing feature is that, in line with empirical evidence, we allow households’ energy demand to be non-homothetic. The model provides three main insights. First, (negative) energy supply shocks act as a (negative) demand shocks, or Keynesian supply shocks, when two conditions are met: On the demand side household income inequality needs to be large, while on the supply side, the price elasticity of consumption goods needs to be high. Second, the social planner can implement the first-best allocation by subsidising firms and poor households while taxing rich households. Energy shocks then act as standard supply shocks. Last, issuing public debt can help implement the first best allocation when energy shocks are large and/or the economy’s overall energy intensity is low.

Strategic Optimization of Conveyor Belt Splicing Solutions: Enhancing Competitive Edge in the Asia-Pacific Market (Case Study: Inspirare Luxiner Group)

The Asia-Pacific region, marked by rapid industrial growth and significant mining activities, offers both opportunities and challenges for companies in the conveyor belt splicing materials market. IL Group, known for its high-quality RARE System, has seen a decline in sales within this competitive environment. The centralization of manufacturing in Atlanta has led to long lead times and high logistics costs, reducing the company’s competitiveness. Moreover, insufficient after-sales support and integration challenges with client systems have further decreased customer satisfaction and retention. This research aims to identify the primary factors behind the RARE System’s decreased sales and to develop strategies for optimizing it to attract and retain clients. Additionally, it seeks to recommend business strategies to enhance IL Group’s competitiveness in the Asia-Pacific market. Data collection involved interviews and surveys with clients and internal stakeholders. The data was analyzed using thematic analysis, root cause analysis, SWOT & TOWS analysis, and Porter’s Five Forces framework. The study found that logistical challenges from centralized manufacturing, inadequate support, intense competition, and integration issues with client systems were key factors driving sales declines. To address these issues, the research recommends that IL Group establish regional manufacturing facilities to reduce costs and lead times. Improving customer support through regional centers and robust CRM systems is also essential. Investing in continuous R&D for product innovation will keep the product relevant and appealing. Implementing flexible pricing models and targeted marketing, along with forming strategic local partnerships, will further enhance competitiveness. By proposing these strategies, this research contributes to strategic business management. It offers practical solutions to enhance operational efficiency and market competitiveness. These strategies provide a structured approach to overcoming key challenges and achieving sustainable growth in the Asia-Pacific market.

Evaluating the Impact of Price Fluctuations on Consumer Buying Decisions and Adaptation Strategies in the Automotive Market

This research paper delves into the intricate dynamics of the U.S. automotive market from 2012 to 2022, with a specific focus on understanding how price fluctuations influence consumer buying decisions and the corresponding adaptation strategies deployed by manufacturers. Through a mixed-methods approach, combining quantitative analysis of sales data, price trends, and economic indicators with qualitative insights from interviews with industry experts and consumers, the study reveals a pronounced shift towards fuel-efficient and electric vehicles (EVs). This shift is primarily driven by consumer sensitivity to price changes and a burgeoning emphasis on environmental sustainability. The findings highlight significant demographic variations in price sensitivity, particularly among younger and middle-income consumers, and delineate the impact of broader economic indicators on purchasing behaviors, especially in the luxury vehicle segment. Manufacturers’ adaptation strategies, including product diversification, investment in sustainable technologies, and flexible pricing models, are also examined. The study’s insights underscore the complex interplay between economic theories of consumer behavior, market adaptation strategies, and the evolving landscape of automotive technology. It offers valuable implications for manufacturers, policymakers, and consumers, aiming to navigate the challenges of market volatility and the transition towards sustainability. The research concludes with recommendations for future studies to explore emerging trends and assess long-term impacts, contributing to a deeper understanding of the automotive market’s adaptive mechanisms in response to economic fluctuations.

Cost-effective contract negotiation strategies for international oil & gas projects

Cost-effective contract negotiation is a critical component in managing international oil and gas projects, where financial efficiency and operational reliability are paramount. The complexity of these projects, which often involve cross-border transactions, diverse stakeholders, and fluctuating market conditions, requires a strategic approach to negotiation. This review highlights key strategies for ensuring cost-effective contract negotiations in the sector. First, a focus on risk-sharing mechanisms allows parties to mitigate uncertainties related to oil price volatility, geopolitical risks, and environmental regulations, fostering mutually beneficial agreements. Collaborative negotiation techniques, where stakeholders adopt a partnership mindset, enhance trust and transparency, leading to better long-term outcomes. Emphasizing local content requirements and engaging with local partners can also reduce costs and improve regulatory compliance, ensuring smoother project execution. In addition, adopting a lifecycle cost analysis during negotiations enables stakeholders to account for long-term financial implications, rather than just initial costs, ensuring more sustainable economic outcomes. Contract standardization can further simplify negotiations by reducing ambiguities and accelerating the drafting process, while flexible pricing models allow for adaptability in response to changing market conditions, minimizing potential cost overruns. Technology integration, such as utilizing data analytics and contract management software, provides real-time insights into pricing, resource allocation, and potential legal complications, helping decision-makers to optimize contract terms. Furthermore, dispute resolution clauses should be carefully crafted to prevent costly legal battles, fostering quicker and more efficient resolutions in case of conflicts. Ultimately, cost-effective contract negotiation strategies require a balance of tactical expertise, legal knowledge, and financial foresight, ensuring the profitability and success of international oil and gas projects. These strategies also emphasize the importance of flexibility, collaboration, and risk management in navigating the intricacies of global oil and gas agreements.

Understanding intention to use bike sharing systems in urban areas in Germany: A mixed-methods analysis

Bike sharing systems (BSSs) can contribute to sustainable mobility. For the design of BSSs, detailed knowledge is still needed about decision-making processes regarding the use of BSSs. This research uses a mixed-methods approach. Using a data set of 202 respondents, a structural equation model (SEM) was calculated with the predictors Performance Expectancy, Effort Expectancy, Facilitating Conditions, Social Influence and Habit. The SEM explained 52% of the variance in Behavioral Intention (BI). Performance Expectancy and Habit emerged as significant predictors. Obtained findings were supplemented by guided interviews to gain further insight. Based on a population that habitually uses its own bicycles, it is suggested to promote BSSs as part of multimodal transportation systems. Flexible pricing models and high-quality bikes are also central aspects to the intention to use BSSs.

News shocks to investment-specific technology in business cycles

Recent research in DSGE and VAR models has indicated that the most important drivers of business cycles are IST shocks, not traditional TFP and other shocks. Research in VAR models has also empirically identified IST news shocks as a significant driving force behind the U.S. business cycle. However, recent New-Keynesian DSGE models have found that IST news shocks do not produce comovement of aggregate variables, with the share of the forecast error variance explained by IST news shocks being very small in a flexible-price model and essentially zero in a sticky-price model. This paper uses the Bayesian methods to estimate the parameters and shock processes to study the business cycle effects of IST news shocks in a two-sector sticky-price DSGE model with consumer durables and collateral constraints. Our variance decompositions indicate that IST news shocks are a more relevant source of uncertainty than IST non-news and other shocks.

Inventory dynamics and endogenous persistence in a new Keynesian model

ABSTRACT We show that a New Keynesian model incorporating inventory dynamics can generate a hump-shaped response of macro-variables to shocks even without habit formation. The impulse responses from the calibrated model show that, in the absence of habit formation, the macro-variables, including output and consumption gaps and the real wage, display a gradual hump-shaped response to monetary policy shocks. We calibrate seven other variants of the model without habit formation. We find that the results still hold in a flexible price model, while the presence of inventories drives the persistence of the macro-variables. Besides, the model replicates most of the empirical business cycle regularities of inventories and the inventory–sales ratio in the data.

Risk Premium Shocks Can Create Inefficient Recessions

Abstract We develop a simple flexible-price model of business cycles driven by spikes in risk premiums. Aggregate shocks increase firms’ uninsurable idiosyncratic risk and raise risk premiums. We show that risk shocks can create quantitatively plausible recessions, with contractions in employment, consumption, and investment. Business cycles are inefficient—output, employment, and consumption fall too much during recessions, compared to the constrained-efficient allocation. Optimal policy involves stimulating employment and consumption during recessions.

Customer‐orientedenergy demand management of grid connected microgrids

The consumers' active participation in production and energy consumption in response to market changes is an integral characteristic of the smart grid paradigm. In other words, their role in energy trading, either at the individual capacity or as aggregators, will shape the future of fulfilling energy needs. Despite the foreseen technological advancements, the design and implementation of demand response programs (DRPs) with accurate customer responsiveness have remained essential for network operators. Moreover, with non-dispatchable energy sources' involvement, DRPs play a vital role in shaping the load profile and minimizing the operating costs. It calls for a need to develop a suitable energy management system (EMS) to promote consumers' active participation. With this sense, the incentive-based DRPs are incorporated into the microgrid EMS to investigate their impact on day-ahead scheduling costs and managing consumers load profile. A stochastic-based EMS framework is proposed to this end, and five distinct types of DRPs are implemented on a practical microgrid network, including commercial, industrial, and residential loads. The flexible price elasticity concept is adopted to model the realistic behavior of price responsive loads under different DRPs. Finally, the recently reported novel optimizer is employed to solve the proposed EMS problem and investigate the flexible price model's impact on optimizing the grid-connected microgrid's daily operating costs. The obtained simulation results are compared with the existing state-of-the-art metaheuristic optimizers to test the attributes related to solution efficiency and convergence rate.

ТЕХНОЛОГІЇ «ІНТЕРНЕТ РЕЧЕЙ» В МІЖНАРОДНОМУ МАРКЕТИНГУ

One of the key trends in international practice is the Internet of Things technology, which contributes to the competitiveness and performance of international companies, as well as the emergence of new product/service functionality and greatly expanded access to information, the emergence of sophisticated distribution networks and flexible pricing models, optimized and personalized advertising campaigns, etc. The article considers the essence and types of Internet of Things technologies with the identification of internal (aimed at optimizing the company’s business processes) and external technologies (as an element of goods/services), and also investigates the intensity of their implementation in various sectors of the economy. The relevance of the implementation of Internet of Things technologies in international business in order to improve the competitiveness of companies in foreign markets was analyzed. The influence of implementation of Internet of Things technologies on the international marketing complex (4P) of the enterprise was investigated. Opportunities (creation of smart products, new augmented pricing models, more accurate consumer segmentation and personalized communication tools) and problems of using data generated by the Internet of Things for international marketing practices were identified. IoT technologies have a significant impact on international marketing research because they provide more accurate, timely and relevant information about consumer preferences. The Internet of Things reveals patterns of product usage, which allows for accurate demand forecasting. Also, Internet of Things technologies allow for more accurate segmentation of consumers, which allows companies to adapt product, communication and pricing policies in target foreign markets. This leads to a minimization of costs and, accordingly, an increase in profits and brand awareness in the long term. Data from IoT-connected devices can be used to understand customers’ daily lifestyles, determine when products need to be replaced and what type of model they would like to purchase, identify factors that influence buying patterns, and the markets where a product will sell the most.

Economic fluctuations in a model with an overlapping structure of employment

This study presents a dynamic general equilibrium model with an explicit employment period and investigates economic fluctuations to a temporary productivity shock. Numerical experiments indicate oscillatory responses of new hiring and employment to the shock which are not observed in a standard flexible price model. The explicit employment period constructs an overlapping structure of employment which results in the oscillatory response. This study also examines the effects of change in employment period to economic fluctuations and shows that the variations in new hiring are higher when the employment period is long.

Heterogeneous Consumers, Segmented Asset Markets and the Real Effects of Monetary Policy

Abstract This article proposes a novel mechanism by which changes in the distribution of money holdings have real aggregate effects. I develop a flexible-price model of segmented asset markets in which monetary policy influences the aggregate demand elasticity via heterogenous money holdings. Because varieties of consumption bundles are purchased sequentially, newly injected money disseminates slowly throughout the economy via second-round effects. The model predicts a short-term inflation-output trade-off, a liquidity effect, countercyclical markups, and pro-cyclical wages after monetary shocks. Among other correlations of financial variables, it also reproduces the empirical, negative relationship between changes in the money supply and markups.

Valuation of credit contingent interest rate swap with credit rating migration

ABSTRACT In this paper, a flexible pricing model for Credit Contingent Interest Rate Swap (CCIRS) with credit rating migration is proposed, which is sensitive to stochastic interest rates and counterparty default risk. This is a new pricing model for CCIRS. The counterparty of the underlying interest rate swap (IRS) is considered to have a high and a low credit grade, and credit rating migration is modelled by the first attempt of the interest rate based on the structural framework. Furthermore, the default event for the underlying IRS is modelled using the reduced-form framework. The partial differential equation (PDE) satisfied by the value of CCIRS with credit rating migration is derived by analysing the cash flow of a CCIRS contract. Finally, the numerical results and parameter analysis, which are solved by using the alternating direction implicit (ADI) method, are discussed and the convergence rate of the numerical algorithm combined with a regular explicit scheme is also suggested.

Research on Pricing of Flexible Two-Dimensional Extended Warranty Considering Preventive Maintenance

Facing the uncertainty in transaction of two-dimensional extended warranty, a flexible pricing model is presented considering imperfect preventive maintenance combined with the degradation characteristics of item. The measure of two-dimensional preventive maintenance is carried out based on specified age interval or usage interval, the effect of imperfect preventive maintenance is described by age reduction model. The extended warranty cost is modeled from the perspective of manufacturer and customer, the method of gridding search is employed to optimize the maintenance strategy under different cases. Moreover, customized extended warranty price and warranty services are proposed on the basis of consumer usage rates. The results demonstrate that it is helpful to maximize the benefit of vendor by providing customized warranty strategy, the implementation of preventive maintenance during the whole warranty period can effectively reduce warranty cost for both sides.

On the mechanics of New-Keynesian models

The monetary transmission mechanism in New-Keynesian models is put to scrutiny. We show that, contrary to the conventional view, the transmission mechanism does not operate through the real interest rate channel. Instead, equilibrium inflation is approximately determined as in a flexible-price model; output is then pinned down by the New-Keynesian Phillips curve. The real rate only reflects the feasibility to keep consumption smooth when income changes. Contractionary monetary policy shocks reducing output and inflation are consistent with an increase, decline, or no change in the real rate. Consistency with the real rate channel is observational, not structural.

Fogology: What is (not) Fog Computing?

Cloud computing (CC) though has a great potential in providing on-demand, scalable provisioning of services with reduce management efforts and flexible pricing models has significant constraints. Firstly, CC pose a challenge in connectivity between the cloud and the end devices thereby unable to provide delay-sensitive services. Secondly, CC provider face limitations due to the imposition from the regulatory bodies to process the data at certain locations where they do not have any data centres. Thirdly, quality of CC service is compromised due to added mobility dimensions. Finally, CC is considered not a viable solution for most of the Internet of Things (IoT) solutions. In this paper, author proposes a new discipline – Fogology, as a novel branch of a discipline CABology. The paper attempt to present and discuss elements of Fogology.

Dynamic Pricing for Resource Consumption in Cloud Service

This paper studies dynamic pricing for cloud service where different resources are consumed by different users. The traditional cloud resource pricing models can be divided into two categories: on‐demand service and reserved service. The former only takes the using time into account and is unfair for the users with long using time and little concurrency. The latter charges the same price to all the users and does not consider the resource consumption of users. Therefore, in this paper, we propose a flexible dynamic pricing model for cloud resources, which not only takes into account the occupying time and resource consumption of different users but also considers the maximal concurrency of resource consumption. As a result, on the one hand, this dynamic pricing model can help users save the cost of cloud resources. On the other hand, the profits of service providers are guaranteed. The key of the pricing model is how to efficiently calculate the maximal concurrency of resource consumption since the cost of providers is dynamically varied based on the maximal concurrency. To support this function in real time, we propose a data structure based on the classical B+ tree and the implementation for its corresponding basic operations like insertion, deletion, split, and query. Finally, the experiment results show that we can complete the dynamic pricing query on 10 million cloud resource usage records within 0.2 seconds on average.

Heterogeneous Consumers, Segmented Asset Markets, and the Real Effects of Monetary Policy

This paper proposes a novel mechanism by which changes in the distribution of money holdings have real effects. Specifically, I develop a flexible-price model of segmented asset markets that generates real aggregate effects of monetary policy through the dependence of optimal markups on the heterogeneity of money holdings. Because varieties of consumption bundles are purchased sequentially, newly injected money disseminates slowly throughout the economy via second-round effects. The model predicts a short-term inflation-output trade-off, a liquidity effect, countercyclical markups, and procyclical wages after monetary shocks. Among other correlations of financial variables, it also reproduces the empirical, negative relationship between changes in the money supply and markups.