Product Pricing Strategies Research Articles

Product Pricing and Design Strategy in Platform-Based Collaborative Innovation With Cognitive Bias

ABSTRACT Collaborative innovation, in which multiple companies try to incorporate content generated by consumers into new product development, is becoming increasingly popular. The fact that overconfidence usually increases with more data means that companies integrating large amounts of consumer-generated content in collaborative innovation have a strong tendency to be overconfident. We study the effects associated with overconfidence in collaborative innovation, where overconfidence is defined as a decision maker’s cognitive bias that leads to an overestimation of the precision of an uncertain event. In our collaborative innovation model, an online shopping platform collects and assimilates content (such as online reviews) generated by consumers to generate a product design and then sells that design to the manufacturer, after which the manufacturer produces a corresponding new product and sets a retail price. In this article, we mainly focus on how overconfidence impacts the product design strategy, pricing strategies, and decision makers’ equilibrium profit levels. We demonstrate that overconfidence can be a positive force for collaborative innovation and even lead to a win-win-win situation for the platform, manufacturer, and consumer. We show that overconfidence can make the platform change its product design strategy from aesthetic-oriented in the unbiased scenario to functionality-oriented in the biased scenario. Furthermore, we show that each of the two product design strategies has its own scope of application; neither is universally dominant.

Product design with attribute dependence

AbstractThis paper studies how product design and pricing strategies are affected by the existing relationship between the characteristics that integrate the product. The analysis shows that complementarity and low substitutability encourage the provision of quality incorporated to the products and increase the quality distortion and cannibalization problems that are common in segmented markets. A two‐product strategy with a common attribute is shown to be a feasible strategy for reasons other than cost savings, namely attribute dependence. In addition, menu pricing is found to be the most profitable strategy, and a commonality strategy is more profitable than a common‐product strategy.

Protection in DRM and pricing strategies for digital products considering quality degradation

<p><big>In this paper, we develop a model in which a monopolistic firm manufactures and sells a digital product, by incorporating digital rights management (DRM), quality degradation of pirated products, and government copyright enforcement into the consumer’s utility function. We determine the monopolist’s optimal pricing strategies and the appropriate DRM protection level through mathematical deduction. Our results show that when the government copyright enforcement is moderate and the quality of pirated products is relatively high, implementing a DRM system is optimal for the monopolist. However, in most other cases, DRM-free is better for the monopolist. This result may explain why DRM is not very popular in some industries. Our results suggest that choosing the right price, focusing on content innovation, and weakening DRM protection may be a better strategy for firms now. The results also indicate that DRM-free may be more prominent in the digital music industry than in the software and video games industries.</big></p>

Optimal Pricing Strategy of New Products and Remanufactured Products Considering Consumers’ Switching Purchase Behavior

Due to income constraints, increased awareness of environmental protection and preference for new products, consumers generate switching purchases between new and remanufactured products, which often lead to a “cannibalization effect” in the market, and make sellers fall into a vicious circle of price reduction. Considering consumers’ switching purchase behavior, this study examines the pricing problem of new products and remanufactured products in the competitive market environment. Based on two-period duopoly asymmetric price game models, there has been less research on the effectiveness of the price matching strategy and the traditional dynamic pricing strategy, which is the issue that this paper is dedicated to discussing. This study analyzes the equilibrium profits and their influencing factors under the dynamic pricing and price matching strategies of sellers, and discusses the simplified solution of the model. The results show that consumer learning costs, initial consumers and product differences can affect the sellers’ pricing decisions. Consumers’ learning costs of products reduces the equilibrium profit of the manufacturer and increases that of the remanufacturer. Initial consumers are not always advantageous for sellers’ profitability. Product differences affect the determination of the seller’s equilibrium strategy. In the optimal strategy, the remanufacturer should insist on price matching, while the manufacturer should choose dynamic pricing or price matching according to the product differences. This study provides sellers with insights to choose appropriate and custom pricing strategies to maximize profit as well as prevent the majority of consumers switching purchase.

Comparative Analysis on the Marketing Strategy of New Energy Vehicles in China: Taking Tesla and NIO as an Example

This paper evaluates and compares Tesla and NIO's marketing strategies in China to conclude why NEVs are commonly used in public transportation but not popularized in private transportation. The analysis is based on the 4Ps and SWOT methodology that includes the evaluation of product strategy, pricing strategy, place strategy, promotion strategy, strengths, weakness, opportunities, and threats of Tesla and NIO. This paper concludes that Tesla and NIO successfully captured the NEV market by utilizing various marketing strategies; whereas NEV complements, such as charging stations, are in short supply which restricts NEV companies from expanding market share in the automobile industry. Further suggestions on research directions and government activities support the realization of the net zero carbon emission objective in the global context of environmental emergencies.

Analysis of Coordination Mode of Dual-channel Experience Service Based on Product Experience

From the perspective of product experience, product pricing and service strategy models of online sales channels and offline sales channels are established to analyze the influence of product experience and consumer free-riding behavior on the product experience and service level of online sales channels and offline sales channels. Then it analyzes the decision-making of centralized decision-making mode and decentralized decision-making mode of offline and offline dual-channel experience service. The results show that when the product experience coefficient is low, that is, the more consumers need to experience to determine the value of the product, the manufacturer should promote the service cooperation of product experience through both online and offline channels, and adopt a centralized decision-making mode. On the contrary, the decentralized decision-making mode should be adopted. In the centralized decision-making mode, the offline sales channel product experience service level is higher than its online product experience service level; When consumers have a lot of free-riding behavior, the level of dual-channel product experience service should be improved, and vice versa.

User Privacy Awareness, Incentive and Data Supply Chain Pricing Strategy

In recent years, the collection, mining, and utilization of data have become a new profit growth point for enterprises, and these events have also accelerated the pace of enterprises to collect users’ data. However, the relevance of personal data privacy and the frequent occurrence of data leakage events have increased users’ privacy awareness. The purpose of our study is to enhance the effective flow of data while protecting users’ data privacy. The data supply chain consists of the end user, data provider, and service provider, and involves the flow of the value-added process of data. Our study focuses on the pricing strategy of data products considering data incentive and data protection levels. We propose three models—centralized pricing, decentralized pricing, and revenue-sharing pricing—and solve them, and then we analyze the impact of users’ privacy awareness on data incentives, protection, and pricing of data products in the three models. We also analyze which pricing method works best for participants.

Research on the optimization of vegetable sales and pricing strategy of single products

Research on the optimization of vegetable sales and pricing strategy of single products

Pemanfatan Lahan Terbatas Menggunakan Sistem Aquaponik di Desa Kawedusan Bersama dengan PKK Desa Kewedusan Tahun 2022

In general, catfish farmers in Kebumen Regency, especially in Kawedusan Village use commercial floating pellets as feed. The use of this feed has several advantages, one of which is the rapid and uniform growth of fish. However, most of the catfish farmers complained about the small profits they received. These benefits are not comparable to the amount of energy and costs that have been incurred, thus threatening the sustainability of the breeder’s business activities. Another problem faced by farmers is the rapid dirty water of the pool, so that the frequency of replacement of water increases, which in turn increases the cost of electricity. When the partner is late in replacing the pool water, it can cause catfish disease that is difficult to control. Dirty water also makes the growth of catfish disrupted because of decreased appetite. The solution offered is by conducting counseling, training and mentoring the cultivation of organic vegetables using the aquaponics method, preparation of simple bookkeeping, calculation of production costs, and product pricing strategies. Selected plants cultivated during the activity are mustard greens (caisim) and kale. Both of these vegetables are of interest to the surrounding community and are suitable to be planted in lowland areas such as Kebumen and have a short planting period (± 40 days). The output of this activity is in the form of improving the skills of partners in vegetable cultivation in an aquaponics manner, compiling simple bookkeeping, calculating production costs, and determining the selling.Keyword: training, aquaponics, land

THE IMPACT OF MARKETING STRATEGY ON THE MARKETING INNOVATION AND THE MARKETING COMPETITIVE ADVANTAGE IN THE JORDANIAN FURNITURE INDUSTRY

This study is designed to explore the influence of marketing strategy on marketing innovation and the marketing competitive advantage. Additionally, in this study, elements of marketing strategy (product strategy, pricing strategy, promotion strategy and distribution strategy) were adopted, and marketing innovation was used as a mediator. Quantitative approach was applied, and a questionnaire was distributed by hand-to-hand method to 267 employees working in the furniture industry on the basis of a convenience sample. SPSS and AMOS were applied as statistical techniques to examine and analyze the primary data. Results of analysis accepted the all-proposed hypothesis. The research has empirically confirmed that marketing strategies have a positive impact on marketing innovation and the marketing competitive advantage; and that marketing innovation had a positive impact as mediator on the marketing competitive advantage. Moreover, it found that the elements of marketing strategy: product, price, promotion, and distribution, have a positive impact on both marketing innovation and marketing competitive advantage. In addition to the above results, it found that elements of marketing strategy have a more positive impact on the marketing competitive advantage than marketing innovation. The study recommended that the companies should determine the right marketing strategy that encourages innovation to distinguish themselves and to gain a competitive advantage in the market by obtaining customer satisfaction considering the changes in the business environment.

Shipping before order making: Optimal shipping quantity and pricing decisions under uncertain demand

The innovative logistics mode of shipping before order making has been used by several leading online retailers, due to its advantage on enhancing consumer delivered value and promoting customer demand. This paper investigates the optimal shipping quantity and product pricing strategy of the online retailer that uses this logistics mode under a stochastic demand, which is shipping-dependent and price-dependent. First, we build an extended newsvendor model and explore the closed-form solutions of the optimal shipping quantity and optimal product pricing strategies under certain assumptions on the demand function. Then, we compare the differences of the optimal strategies under different risk attitudes and analyze the impact of key parameters on the optimal strategies. At last, we extend the basic model by considering a general demand function. We conduct numerical experiments to verify the theoretical conclusions and analyze the effect of parameters on online retailers’ optimal strategies and profits. The results show that the optimal shipping quantity first increases and then decreases with the increase of the price. This suggests that the online retailers should avoid blind price war under this logistics mode. The risk aversion degree slightly affects the optimal price, but significantly affects the optimal shipping quantity. Moreover, we find that parameters such as disposal cost and sensitivity of demand to shipping in advance significantly affect the optimal strategies of online retailers.

CIKAMPAK FASHION OUTLET MARKETING COMMUNICATION STRATEGY IN INCREASING PUBLIC INTENTION TO BUY

Abstract:
 The marketing communication strategy is designed to determine the goals and direction of marketing in a business related to positioning, objectives and elements of the marketing mix. This qualitative study aims to obtain information about the communication plan in the field of marketing carried out by the Cikampak Fashion Outlet to increase the willingness to buy in the community. This study involved shop owners and several store employees who were positioned as research informants. This research uses qualitative research with direct observation techniques and data collection through interviews. This research focuses on how the product quality strategy and pricing strategy at Fashion Outlet Cikampak increase people's buying interest. Reducing data, presenting facts, and drawing conclusions are the methods of data analysis in this study. The results obtained indicate that Fashion Outlet Cikampak has a successful marketing communication plan that increases consumer interest in the advertised goods. This shows that, to achieve the desired target market, companies must develop a well-thought-out marketing strategy to achieve the initial goals.
 
 Keywords: Marketing Communication Strategy, Public Purchase Intention

Optimal product quality and pricing strategy for a two-period closed-loop supply chain under return policy

This article considers a two-period closed-loop supply chain (CLSC) model, where a manufacturer and a retailer are trading one product. The retailer’s demand rate for each period is dependent on the selling price, product quality, and refund price. The first period’s product quality has an impact on the second period’s demand rate. In the first period, returned products are remanufactured and sold through the retailer with the new products in the second period. The manufacturer is the leader of the Stackelberg game who declares wholesale price(s) and quality of the product to the retailer who follows the manufacturer’s decision and sets his selling prices for two consecutive periods. The manufacturer implements two pricing policies: (I) sets the same wholesale price for both periods (II) sets different wholesale prices for two different periods. The present research’s main aim is to find the optimal strategies for lower pricing and high-quality products. Under these circumstances, four different decision strategies between the manufacturer and the retailer are developed and compared these strategies analytically and numerically. The effects of different decision strategies on the optimal supply chain results are developed with a numerical example. An optimal solution for all four strategies is obtained using Mathematica 9. In addition, graphical analyses are developed to determine under what circumstances a particular decision strategy is dominant over others. Numerical analysis suggests that fast-acting strategies produce dominant results, but adopting strategies with advanced notice can produce higher quality products.

Pricing and Assortment Decision of Competitive Omnichannel Selling Strategy: Considering Online Return Cost

In the age of new retailing, consumers are discovering brands in new ways and seeking new conveniences to guide their purchasing decisions. Increasingly, retailers are offering consumers a cohesive and comprehensive experience across digital and physical touchpoints by integrating online and offline channels. This study considers a competitive market structure with two retailers selling four products via both online and offline channels. The retailers act as the decision maker of both the product assortment strategy and pricing strategy. Consumers are heterogenous in their horizontal fitness regarding each product, while they are common in the return probability when facing a deceptive product. Consumers’ purchase decision of whether to purchase through physical stores or online stores and making a purchase from which retailers depend on not only the product assortment strategies across competitive retailers but also the return cost that the consumers are faced with if product return happens. Results show that the online product return cost plays an important role in the retailers’ optimal pricing strategy design and product assortment strategy design. To be specific, the optimal prices of products that are sold through the online channel first increase in the return cost of the online product and then decrease it; while the optimal prices of products sold offline are always increasing in the online product return cost. Moreover, no matter what placement strategy sellers will choose, the optimal profit of both sellers is first decreasing the return cost of the online product and then increasing it. Our analyses also depict a two-dimensional market structure by considering sellers’ return costs and consumers’ misfit costs to investigate the optimal selling strategies under the cross-channel shopping platform.

ONLINE MARKETING ON PRICING STRATEGIES FOR THE INDONESIAN TOURISM INDUSTRY PRODUCTS DURING THE COVID-19 PANDEMIC

The purpose of this study is to find out the relationship between the tourism products offered, the tourism services offered and the promotional activities offered whether directly or indirectly affect the interest of tourists to visit during the Pandemic through product pricing strategies. In this study, the only variables that exist are marketing activities of tourism services or services such as products offered, tourist services offered and promotional activities, which only focus on explaining the effect of these three variables on tourist interest in visiting tourist attractions during a pandemic, while the variable intervening marketing activities or the marketing mix of product pricing strategies that are the connecting variables that affect tourist interest in visiting tourist attractions during a pandemic. The research method used in this research is descriptive quantitative research method using path analysis. In this study, the independent variables are marketing activities or marketing mix such as: tourism services such as, products offered, tourism services offered and promotional activities to be carried out, while for the intervening variable is the marketing activity variable, namely the product pricing strategy and the dependent variable is the interest of tourists visiting during a pandemic using SPSS 20. Partially, only the variables of promotional activities carried out have a positive and significant effect on the variableproduct pricing strategies during a pandemic as well as variables of tourist interest in visiting during a pandemic. Meanwhile, simultaneously, the variables of the products offered, the tourism services offered and the promotional activities that will be carried out have a positive and significant effect on the variable of tourist interest in visiting during the pandemic through the variable pricing strategy of the product during the pandemic as an intervening variable. Through the results of research, it has been stated that the products and services offered through online marketing during the pandemic have not been able to increase the interest of tourists to visit tourist attractions during the COVID-19 pandemic, while the owners of tourist attractions must carry out vigorous promotional activities so that tourists are interested in visiting. Tourist attractions, thus influencing the pricing strategy that will be applied to tourism products and services.

Optimal shipping quantity, product pricing strategies and carbon emissions of online retailers under a new logistics mode

A new logistics mode has emerged in online retailing, which ships products before customers place orders online to reduce the waiting time for customers to receive them. The existing research on this logistics mode mainly focuses on the shipping quantity (i.e., the quantity of products to be shipped in advance from the order fulfillment center to the distribution center nearby customers before the order is placed online), while the product pricing problem and carbon emissions have not been studied comprehensively. Moreover, the risk attitudes of decision-makers have been ignored in the studies related to this new logistics mode. This paper builds an extended newsvendor model to explore the optimal joint decision problem of shipping quantity and product pricing under this new logistics mode and analyzes the carbon emissions of this new logistics mode compared with the traditional logistics mode. We consider decision-makers to be risk averse and take Conditional Value-at-Risk (CVaR) as the risk measure criterion. For both multiplicative and additive demand models, we obtain the closed-form solution of the optimal strategy. The differences between the optimal strategies of risk-averse and risk-neutral decision-makers and between the optimal strategies of this logistics mode and the traditional one have also been explored. Based on the optimal shipping quantity and product pricing strategies, we analyze the carbon emission variation of this logistics mode compared with the traditional one and provide sufficient conditions for reducing carbon emissions. Numerical experiments verify the theoretical conclusions and analyze the effect of some parameters on the optimal strategy, profit and carbon emission variation. The results show that online retailers should reduce product price in this new logistics mode compared with the traditional one. The risk-aversion degree slightly affects the optimal price but significantly affects the shipping quantity. Moreover, implementing this new logistics mode contributes to reducing carbon emissions compared with the traditional logistics mode in most cases. This study helps support online retailers in developing shipping quantity and product pricing strategies under this new logistics mode and helps the Environmental Protection Association to understand the carbon emissions under this new logistics mode so that relevant strategies can be developed.

Optimal Pricing Model of Environmental Quality Index Futures from the Perspective of Green Finance

In order to establish the optimal price of low-carbon products and set the optimal target carbon emissions in the production cycle so as to maximize profits, this paper proposes the optimal pricing model of environmental quality index futures from the perspective of green finance. This paper mainly studies the optimal pricing and carbon emission strategy of low-carbon products of a single enterprise under the carbon trading system based on the quota system. When enterprises join the carbon trading system, how to optimally determine their target carbon emissions in the production cycle and the optimal price of their low-carbon products in order to maximize their own profits, based on the carbon emission quotas freely allocated by the government in the face of exogenous carbon trading prices and different consumer preferences for low-carbon products in the market, is discussed in detail. The experimental results show that the low marginal cost of emission reduction will urge enterprises to implement low-emission strategies as much as possible, and the marginal cost of a specific size will enable enterprises to implement low-carbon policies with low emissions, and the optimal emissions will decline with the increase of carbon prices. However, from the perspective of 50–300 carbon trading prices, the profits generated are less than those of the minimum emission strategy, and the difference between the two is generally one order of magnitude. Therefore, if the internal conditions permit and the external carbon trading price is reasonable, enterprises should reduce carbon emissions as much as possible. The properties obtained from the model analysis and the numerical conclusions given in the example part reflect the relationship between the enterprise product pricing, the marginal cost of emission reduction, and the target emission decision-making and draw some valuable information for the enterprise and the government decision-making.

Differential pricing and production strategies for heterogeneous products under cannibalization and promotional effects

This study examines the optimal pricing and production strategy of a closed-loop supply chain consisting of a manufacturer, a recycler, and consumers. Considering the cannibalization and promotion effects of remanufactured products on new and secondhand products, we constructed Stackelberg game models under different scenarios. We analyze the impact of the changes in the two effects on the optimal prices and production strategies of the manufacturer and recycler, as well as their countermeasures. We find that (i) how the cannibalization and promotional effects influence the manufacturer and the recycler's pricing and production strategies differ under different scenarios; (ii) when the two effects exceed a threshold, the manufacturer abandons new or remanufactured products, and the recycler prefers to stop production on its new products or continue to remanufacture products; and (iii) the two effects always reduce the profits of the manufacturer and increase the profits of the recycler.

Optimal decisions for the innovative enterprise considering brand goodwill and consumers’ quality expectation

The innovative enterprise entering a new market makes optimal decisions based on consumer behavior and market conditions. This study investigates product pricing strategy and quality strategy by considering the brand goodwill of the innovative enterprise and the consumers’ quality expectation. We mainly analyze three scenarios including the innovative product strategies with no competition, competitive pricing, and asymmetric-information case. Results show that the optimal price and quality level of the innovative product are not always positively correlated with the brand goodwill of the innovative enterprise. Moreover, to cope with a competitive market, optimal prices and production strategies are proposed. Faced with consumers insensitive to quality bias, the innovative enterprise with low brand goodwill can hardly gain an advantage in quality strategy. In a Bertrand competitive market, the optimal price and corresponding production strategy of an innovative product are somewhat different from that in a Stackelberg game market. In addition, information transparency is key to the success or failure of an innovative enterprise in a competitive market.

Evolution delayed decision game based on carbon emission and capacity sharing in the Chinese market

Based on the carbon emission policy and low-carbon capacity sharing, this paper studies the optimal product pricing and capacity matching strategies of competition and cooperation between two companies in a duopoly market. And the optimal strategies with or without capacity sharing are discussed. In addition, a differential game model based on carbon emission constraints, low-carbon capacity sharing, and delayed decision-making is established. We also study the evolution of duopoly enterprises from the initial state to the equilibrium state. Besides, the influence of delayed decision variables, price adjustment speed and decision weights on the stability of the game system is analyzed. The results show that the government can effectively intervene and guide the enterprises’ low-carbon production strategy through carbon emission restriction policy. Low-carbon capacity sharing is beneficial to both enterprises, and the demand side benefits more than the supply side. We discuss the impact of stable and unstable systems on enterprises’ decisions. When the system is stable, enterprises can converge from different initial game states to equilibrium states. The adoption of a delay strategy will not affect the tendency of convergence to the equilibrium. Furthermore, the system using the variable feedback control method is of higher stability.