Product Pricing Strategies Research Articles

Effects of Distance and Reliability on Value of Time in Intercity Freight Transportation: An Adaptive Experiment in China

Road–rail container intermodal transportation is considered a solution to reduce the share of truck transportation in China. A modal shift from truck to intermodal alternatives requires a better understanding of freight mode choice behavior and improved estimations of the value of service attributes. This paper focuses on the effects of distance and reliability on the value of time (VOT). An adaptive experiment is conducted on potential customers of intermodal transportation in the Yangtze River Delta area, China. Multinomial logit (binary logit) and mixed logit models are estimated for eight specifications. The results show that shipper characteristics, commodity characteristics, and shipment characteristics significantly influence the mode choice behavior. Specifications with an interaction term between the logarithm of distance and transportation time perform better. The VOT of short-distance transportation is higher than that of long-distance transportation. The rate of VOT reduction decreases with increasing distance. In addition, incorporating the reliability variable in model specifications leads to a more homogeneous random parameter distribution of time and a lower VOT. This study helps intermodal operators to optimize product and design pricing strategies. Moreover, the proposed measures help to promote the modal shift from truck to road–rail container intermodal transportation.

The Pricing Strategy of the Agricultural Product Supply Chain with Farmer Cooperatives as the Core Enterprise

The pricing strategy of agricultural products not only affects the product demand and purchasing behavior of consumers, but also the income distribution of node enterprises and the overall profit of the agricultural supply chain. This paper studies the pricing strategy of the agricultural product supply chain with farmer cooperatives as the core enterprise. Considering the heterogeneous demand of consumers, this paper introduces the degree of agricultural product characteristics and establishes a dynamic pricing model for agricultural products under decentralized decision-making and centralized decision-making and designs a revenue sharing coordination contract. The results indicate that the overall profit of the supply chain obtained by pricing agricultural products through a decentralized decision-making model is lower than that created under centralized decision-making. Improving the degree of agricultural product’s characteristics and adopting the revenue sharing contract is conducive to the Pareto improvement of supply members. The relevant recommendations provide a reference for the product pricing strategy of this type of agricultural product supply chain.

Consider strategic consumers and trade-in product dynamic pricing strategy research

This paper analyzes the choice behavior of strategic consumers and the impact of trade- in on product pricing path, compares the equilibrium deviation between different pricing decision- making methods, and discusses the optimal product pricing strategy under different situations. It is found that strategic consumers tend to buy low quality products with lower price if the degree of strategy is higher. The higher the level of quality investment, the stronger the willingness of strategic consumers to buy new products. Compared with centralized decision-making, decentralized decision-making is more conducive to the two enterprises to improve their own profit level. The relevant conclusions of the research can provide forward-looking basis for enterprises in the launch timing of new and old products, pricing decisions and trade-in strategies, which has certain theoretical significance and practical value.

Processing and Optimizing Industrial Structure Adjustment of Intangible Cultural Heritage by Big Data Technology in the Internet Era

This paper conducts an in-depth study and analysis of the preservation of ancient village heritage and the restructuring and optimization of cultural industries in western Guangdong in the context of the current “Internet+.” This study is problem-oriented and aims to improve the common rural environment in the less developed areas of western Guangdong from the perspective of sustainable development. This study conducts an objective investigation and understanding of villages, combining contemporary methods and techniques of quantitative analysis. This study aims to understand the regular characteristics of the evolution of the settlement space itself based on the characteristics of the interaction between the settlement space itself, especially with the local natural ecology and human society, to explore the localized decision making of the village settlement space, and to propose a specific and operable systematic approach from macro to micro, an approach that focuses on the village settlements established. This approach focuses on the optimization of the existing pattern, architecture, and surrounding vernacular landscape of rural settlements and is a critical inheritance based on the existing spatial pattern, emphasizing the coordination and unity of multiple factors related to the settlement space. Combining the background of the era of “Internet+” and the actual situation of the development of tourism in ancient villages in western Guangdong, a marketing 4Ps combination strategy suitable for the development of tourism in ancient villages in western Guangdong was formulated. The flexible and diverse forms of operation also determine the independence of the villagers in the distribution of benefits. The villagers take the family as the unit of self-employment, and the distribution of benefits is distributed by the villagers themselves within the family. The product strategy, product pricing strategy, marketing channels, and promotion strategy of “Internet+ rural tourism” are formulated. A study on the cultural renewal strategy of the Nanchang community in the context of rural revitalization strategy. Based on clarifying the idea of cultural renewal, the principles of cultural renewal are proposed based on the strategic planning of rural revitalization: the principle of overall protection and development, the principle of restoring the old as the old, and the principle of regional linkage renewal. Based on the conservation plan of the Nanchang community, the scope of its conservation and conservation framework is sorted out, and the cultural renewal strategy of the Nanchang community is elaborated in four aspects: optimization of the overall layout of the village, enhancement of public space, improvement of key buildings and living heritage of intangible cultural heritage.

Optimal pricing of online products based on customer anchoring‐adjustment psychology

AbstractOnline product pricing is an important factor that affects the purchase of customers and the earnings of e‐commerce platform enterprises. It has an increasingly prominent influence on consumers’ purchasing decisions. To study the influence of customers’ anchoring psychology and product pricing on customers’ purchasing behaviors, this paper proposes a pricing model that considers online consumers to be anchored by the product price and sales. The cognitive bias of online consumers is described by a utility function based on an anchoring‐adjustment heuristic, and consumer choice behavior and an online product pricing strategy are studied with a multinomial logit model. Then, it studies the influence of the anchoring point and anchoring degree on optimal pricing, sales and profit. In particular, when consumers are anchored only by sales of goods, the optimal solution is monotonic with respect to the anchoring degree. However, when consumers are anchored by both price and sales, both factors affect consumer behaviors and produce more complex results. This paper provides a flexible pricing mechanism for platform enterprises, and it can provide a theoretical basis and decision support for dynamic pricing of platform enterprises based on historical consumption data.

Short-term or long-term cooperation between retailer and MCN? New launched products sales strategies in live streaming e-commerce

Nowadays, live streaming e-commerce has become popular all over the world. In this paper, we study the pricing strategy of new products when they are launched in live streaming considering the consumer uncertainty and network externalities. We characterize the impact of live streaming into two dimensions, emotional support and information support, and investigate how those two dimensions impact the choice of cooperation types and the revenue distribution between the retailer and MCN (Multi-Channel Network). Using a two-stage vertical model, we find that, with the low consumer uncertainty, the MCN induces the retailer to choose the cooperation type depending on the emotional support level, but with the high consumer uncertainty, it depends on the information support level. For new-product pricing strategy, whether to adopt the penetration pricing strategy or the skimming pricing strategy depends on the impact of live streaming, the consumer uncertainty and network externalities. Interestingly, the commission price does not increase with the consumer uncertainty. An important implication for the retailer is that, reducing consumer uncertainty may not be beneficial to the total profit.

Research on pricing strategy of online education products considering consumers' matching degree and price comparison behavior

PurposeThe uncertainty of consumers' perceived value makes online education enterprises face great challenge in developing the pricing strategy. So the purpose of this paper is to research the pricing strategies of online education products by considering knowledge consumers' characteristics.Design/methodology/approachConsidering consumer matching degree and price comparison, this study establishes the utility functions of consumers in normal sales period and discount selling period. On this basis, the research builds pricing models of the online education enterprise under the strategy of price undertaking and intertemporal pricing strategy. It further discusses the impact of consumer matching degree, consumer price sensitivity and different types of consumers on the product price and profit of online education enterprises, and reveals the optimal pricing strategy of the enterprise.FindingsConsumer matching degree and price sensitivity coefficient have positive effects on product price and enterprise profit, but they have different effects on product demand; there are differences in the perceived value of the three types of consumers, and matching consumers are the optimal consumer group; the intertemporal pricing strategy is better than the strategy of price undertaking only when the price sensitivity coefficient is greater than a critical value.Originality/valueThis study enriches the literature on the pricing model of online education products and owns a practical significance to guide the online enterprise to make marketing strategies to increase profit.

An analysis of three pricing strategies for digital music products

Digital music albums can be sold either as singles or as a full album, which is not an option for selling physical music products. This paper investigates three pricing strategies for selling digital music albums. The first (strategy S) sets a unified unit price and all songs are sold at this price. The second (strategy F) determines a bundling price for selling the whole album. The third (strategy M) mixes strategies S and F. It offers two prices: one is for a unit song and the other for the whole album. We develop mathematical models for this problem and design enumeration-based iteration algorithms to solve these models for optimality. Through a database consisting of 243 groups of numerical results, we establish a decision tree model, a popular data mining technique, to explain which strategy should be employed under various conditions.

Product design and pricing strategies in a closed-loop supply chain with patent protection

PurposeThis paper aims to propose a two-period model in which an original equipment manufacturer (OEM) decides the remanufacturability level of products in product design and unit patent licensing fee at the first period, and a third-party remanufacturer (3PR) that has been licensed by the OEM enters the remanufacturing market to compete with the OEM at the second period.Design/methodology/approachThis paper analyzes the OEM's optimal decisions of remanufacturability level in the product design and unit patent licensing fee at the first period, as well as the OEM's and the 3PR's optimal decisions of selling prices at the second period, under two scenarios that the remanufacturing is constrained or unconstrained by the collected quantity available at the end of the first period, by making use of game theory.FindingsThe study finds that the OEM will choose high remanufacturability in product design only when the unit cost saving of remanufacturing or unit production cost of new products exceed certain thresholds.Originality/valueThe study is the first attempt to simultaneously integrate product design and patent licensing in remanufacturing. It provides useful insights for OEM managers who face competition from 3PRs and may use their product design strategies to deter 3PRs and may protect patent of products by levying patent licensing fees from 3PRs.

Peranan Sumber Daya Manusia dan Presentasi (Presenter) Dalam Memasarkan Produk Pendidikan di Lembaga Pendidikan dan Pengembangan Profesi Nusantara

To win business competition either in the field of education or other fields businesses must carry out various marketing strategies such as: product strategy, pricing strategy, promotional strategy, and strategy and presentation of Manusa resources. The last two strategies are important strategies in recruiting prospective students (customers), Presenter's performance can be measured through the ratio of consumers who come to then enroll and the next who register (become students). The problem at the moment is that thebalancebetween consumers who come, consumers who sign up and consumers who are accepted is poorly maintained . Based on the above problems, the author chose the Nusantara Professional Education and Development Institute (LP3N) as the object of research, because LP3N is an educational institution engaged in the development of Human Resources (HR) that produces ready-to-eat labor. The purpose of this research is prioritized to know the extent of the role of human resources and presentations (presenters) in marketing educational products in order to attract students in the process of admission of new students conducted by educational institutions and professional development of the archipelago (LP3N). In addition, in order to be utilized by the Nusantara Professional Education and Development Institute (LP3N) in taking policy in its marketing activities. In this study using quantitative method where this research is intended to describe and analyze the role of presenters in marketing educational products in educational institutions and professional development of the archipelago. While in the calculation process using SPSS Version 24 . Keywords : Consumers, Human Resources, Marketing Strategy, Performance, Presenter .

Bi-level pricing and inventory strategies for perishable products in a competitive supply chain

This paper aims to develop a new bi-level game model for joint pricing and inventory decisions in a competitive supply chain consisting of a dominant manufacturer, who produces single perishable product from deteriorating raw materials, and two follower retailers who face nonlinear price-dependent demand and operate under Cournot assumptions. Three levels of warehousing including raw material warehouse, final product warehouse, and retail warehouses with exponential deterioration rates are considered to explore the joint impact of deterioration rate and price elasticity on the equilibrium inventory decisions. A Stackelberg–Nash–Cournot model is developed to seek the equilibrium prices, quantities, and replenishment cycles and is solved through an exact methodology. A numerical example is presented to validate the proposed model and comprehensive sensitivity analyses are carried out to measure the impact of the model’s key parameters including the deterioration rate in the producer’s and the retailers’ warehouses, the retail and competitor price elasticity, and the market scale on the equilibrium.

Effect of Product Attribute and Pricing Strategy on Multinational Firms Competitiveness

In today‘s dynamic and turbulent environment, organizations are increasingly entering into the international market to sustain competitive advantage and explore special skills and knowledge and the need to improve their performance. This study examined how competitiveness could be achieved using product attributes and pricing strategy in Nigerian multinational firms. The survey research design was adopted. A structured questionnaire was employed in collecting data from 313 respondents in Nestle Nigeria Plc, Unilever Nigeria Plc, and P.Z. Cussons Nigeria Plc, which was obtained through Raosoft sample estimator at 95% confidence level and 5% error margin using selected multinationals in fast-moving consumer goods. Categorical regression was used to determine the effect of product attribute and pricing strategy on multinational firms‘ competitiveness in Nigeria. The study revealed that product attributes and pricing strategy have positive, significant, and joint effects on multinational firms‘ competitiveness with coefficient and p-value of β1 =0.288 (p-value<0.000) and β2 =0.289 (p-value<0.000) at F-stat=67.795 (0.000) and adj. R2 =0.381. Therefore, it is concluded that competitiveness can be achieved using product attributes and pricing strategy. It is recommended that firms place greater emphasis on their products‘ attributes and pricing to improve their competitiveness posture.

Cause-Related Product Pricing with Regular Product Reference

Inspired by the universal application of cause marketing (CM) campaign, this paper develops a game theoretical model to investigate cause-related product pricing problem. By considering the customer’s prosociality level and reference behavior, where the overall utility of regular product as a reference point, we separately study the cause-related product pricing strategies for competitor with and without response. Analytical results show that consumers’ purchase behaviors (i.e., differential levels of prosociality and reference recognition) significantly influence the cause-related product pricing decisions. When faced with consumers who have different purchase behaviors, the cause-related product pricing strategies should be adjusted accordingly.

Analysis of willingness to pay for ‘Ketakasi’ ground coffee in Jember Regency

Willingness to pay (WTP) has been widely used to measure the value of an item, both private and public goods, also shared resources. More recently, the WTP concept is also applied to marketing management for product development and pricing strategies. Ketakasi ground coffee is a premium Robusta coffee product of Jember Regency. The price of Ketakasi ground coffee per package with a net weight of 160 grams was sold at IDR 15,000, relatively more expensive compared to the price of branded ground coffee product which were sold at an average of IDR 12,000 per pack. Perception about the price of Ketakasi ground coffee which was considered expensive by consumers could make an obstacle for producers to achieve the expected target customers. This research aimed to determine the value of WTP of Ketakasi ground coffee; and factors influencing the WTP. A total of 60 respondents were interviewed in this research. Average value of consumers’ willingness to pay was analyzed by the descriptive statistics, while the factors influencing the willingness to pay consumers were analyzed by logistic regressions. Results showed that the value of consumers’ WTP reached IDR 16,000 per pack. This value was actually higher compared to the current market price, i.e., IDR 15,000, with consumer surplus of IDR 1,000. The taste of local coffee was identified as the main reason why consumers willing to pay higher than the current market price. Factors significantly influencing consumers’ WTP of Ketakasi ground coffee were consumer’s gender, types of jobs, and income.

Quality collaboration contracts under product pricing strategies

We study how the manufacturer and the supplier collaborate under various pricing and contracting scenarios. We characterize two downstream pricing strategies: (a) where the manufacturer announces the market price before the quality is determined, and (b) where the manufacturer decides the market price after the quality is determined. We also study three different contracting structures: (a) effort levels are both contractible and verifiable, (b) revenue sharing agreement between manufacturer and supplier, and (c) effort dependent contract when effort levels are verifiable but not contractible. We determine under which conditions the manufacturer should implement each of the scenarios.

PENGEMBANGAN MANAJEMEN USAHA SEBAGAI UPAYA PENINGKATAN KINERJA BUMDES

The aim of this research is to find out how the Bung Hatta BUMDes business development strategy is. The research location was carried out at the Bung Hatta BUMDes Gabus Banaran, Tembelang, Jombang. This type of research is qualitative research. Data collection was carried out through several techniques, namely direct observation, interviews, literature studies, and documentation. Data analysis in this study conducted by researchers was more focused during the process in the field along with data collection. The results of the study showed that BUMDes Bung Hatta runs a business in the form of building materials and postal services. The strategies used by BUMDES Bung Hatta include product development strategies, pricing and financial strategies. BUMDes Bung Hatta needs to add more variety to the products being sold. BUMDes Bung Hatta markets products in the online sales medium Shopee. From a financial point of view, BUMDes Bung Hatta continues to improve and optimize the results of existing business profits so that cash flow continues to rotate and the profits obtained can be used for access to the next capital, besides that it also makes monthly reports and is evaluated for all business activities that have been carried out, then seen various problems that have been encountered in running the business.

Expected loss utility for natural hazards and its application in pricing property insurance products

Due to climatic hazards and extreme weather events, the pricing of property insurance products is increasingly attracting the attention of policyholders, insurance companies, and governments. Pricing based on market-oriented methods has to consider the affecting factors from policyholders’ perceived value. Pricing strategy design generates the need for natural hazards risk assessments. A natural hazard risk assessment is closely related to the human factors of a disaster-bearing body. In response to this need, we design an extension of the expected utility that is inconsistent with the additive expected utility, considering the human factors of policyholders, which is referred to as the expected loss utility (ELU). The ELU presents two improvements of the currently used utility. First, subjective probability, which is derived from individual predictions over acts, is applied to the ELU function to overcome the disadvantage that objective probability attaches to uncertainty does not reflect the uncertainty of human factors. Policyholders’ risk attitudes are reflected by the interpretation of interactions among uncertain events. Second, the hesitant fuzzy linguistic preference relation (HFLPR) is employed as the assessment of individual loss evaluation to reflect a policyholder’s hesitation. We apply the techniques of fuzzy linguistic term aggregation and perform a comparison to simplify our loss utility function. A detailed process of expected loss assessment is proposed due to variations in natural environment factors, local social characteristics, and disaster-bearing body factors. An illustrative example is given to perform a comparison with cumulative prospect theory to show the merits of the ELU. This study quantifies policyholder’s cognition of uncertain event and the cognition’s influence on risk assessment which can guide pricing strategy of property insurance products.

Optimal pricing and inventory strategies for fashion products under time-dependent interest rate and demand

In this work we consider the dynamic pricing problem of a retailer operating in a market with a single fashion item and under time-dependent interest rate. The demand is assumed to be deterministic and dependent on the price and decay with time, i.e., the market shrinks throughout the horizon. Using an optimal-control-theoretic approach, we analytically derive the optimal pricing and inventory strategy for the retailer over a finite horizon setting. We further analyze the ramifications of the optimal pricing decision for different initial inventory levels dictated by the relationship between the supplier and the retailer; and for varying market interest rates. Optimal dynamic pricing policy is a continuous function, which is almost impossible to use in practice. This is handled using approximate piece-wise constant pricing policies. The trade-off between dynamic pricing policy and approximate policies is also investigated.

Manufacturer’s Sharing Servitization Transformation and Product Pricing Strategy

The sharing market includes the idle product sharing by the owner and the firm’s new product sharing. Companies participating in the sharing economy choose to withdraw from the market because it is always difficult to make a profit, due to heavy asset investment, but there is no such worry for owners who do not need cost input. At the same time, we have observed that the sharing products launched by companies are difficult to meet the rental needs of consumers. Based on the above findings, we have constructed a model where there is a market where a monopolistic manufacturer sells and rents out at the same time, and owners who purchased new products can choose to rent out products when they are idle. Because of the uncoordinated supply and demand matching of the sharing market and the excessively high unit cost input, our research found that: (1) the barriers for the manufacturer to enter the sharing market are always high—for example, the manufacturer will choose to enter the sharing market only when consumers have a high rate of availability of sharing products. Only when the cost of products in the sharing market is not low will the manufacturer choose to provide sharing services; (2) the competition between the two products in the sharing market weakens the demand cannibalize in the sales market; (3) the manufacturer enters the sharing market to promote the owner’s income. The owner’s earnings will increase with the rising of sharing products’ availability.

Product Greenness and Pricing Strategy of Supply Chain Incorporating Asymmetric Heterogeneous Preferences

The decision making of product greenness and pricing strategy is important to achieve sustainable competitiveness of supply chain systems. Behavioral studies find that individual preferences, such as altruism and fairness, can affect the decision and performance of the supply chain significantly. However, the previous widely adopted assumption contradicts the private, asymmetric, and diverse behaviors in reality. This paper considers a green supply chain with asymmetric heterogeneous preferences, in which the manufacturer does not know whether the behavioral type of the retailer is self-interest or altruistic. The optimal decisions on product greenness and pricing strategy of the supply chain under asymmetric heterogeneous preferences are obtained with a game analytic model of incomplete information. The impact of asymmetric preferences on product greenness, price, and supply chain performance is attained by comparing the results under symmetric and asymmetric scenarios. How heterogeneous preferences change the impact of asymmetric preferences is presented with sensitivity analysis. The case study illustrates and verifies the impact of asymmetric preferences, and its sensitivity with respect to heterogeneous preferences. The findings show that asymmetric preferences will reduce the product greenness and wholesale price decided by the manufacturer, will enhance the retail price decided by the self-interest retailer, and meanwhile reduce that decided by the altruistic retailer. Moreover, asymmetric preferences will decrease the manufacturer's profit, reduce the self-interest retailer's profit, and enhance the altruistic retailer's profit while reducing the altruistic retailer's utility. Their influence extents will increase in the heterogeneity of preferences with few exceptions in cases of the self-interest retailer's profit and the altruistic retailer's utility. The theoretical findings generate some managerial implications, by which for example it is necessary to adjust promptly the estimation about the behavior types of supply chain partners.