Selling Scheme Research Articles

Advance selling strategy and pricing decisions with online reviews

AbstractMotivated by marketing practices in advance selling, this paper studies the optimal pricing decisions and advance selling strategy with online reviews. The firm may charge a full or partial price in advance selling and then determine whether to continue selling products in the spot market. We characterize the equilibrium pricing decisions, selling scheme, and advance selling strategy in the monopoly market. We find that no matter what kind of advance selling strategy is implemented, the firm should choose the two‐period selling scheme instead of the one‐period one to market the product. Notably, when the two‐period selling scheme is chosen, either the skimming pricing or the penetration pricing may be optimal for the firm. Specifically, when the review valence is significantly lower, the skimming pricing is always favored by the firm; otherwise, the penetration pricing is more profitable. Moreover, the disclosure quality and review valence jointly affect the choice of firm's optimal advance selling strategy. In detail, advance selling with a full‐price strategy is always dominant if the disclosure quality is high; otherwise, the firm's optimal advance selling strategy is determined by the review valence. Meanwhile, we also analyze several extensions to explore meaningful insights and provide decision‐making support for the firm facing a complex marketing environment.

Implementation of Murabahah in Sharia Banks According to the Al-Qur'an Surah Al-Baqarah Verse 275

Murabahah is an effort to find sustenance through buying and selling. Murabaha is buying and selling based on consensual between the two parties who transact. This article aims to find out the implementation of Murabahah in Islamic banking according to the Qur'an Surah al-Baqarah verse 275. Why Murabaha financing dominates compared to other financing. This writing method uses a book survey technique (library research) regarding the literature related to the implementation of murabahah. The result of this article is that Murabahah is permissible and does not conflict with the teachings of Islamic Shari'ah. Murabahah financing is widely used because it has a relatively lower risk, both from the bank and the customer side. From the customer's side, there is certainty about the number of installments because, in this buying and selling scheme, the margin value (bank profit) is set which does not change until the financing is paid off.

Optimal selling scheme in social networks: hierarchical signaling, sequential selling, and chain structure

We study the optimal selling scheme when a seller sells a product/service with a positive consumption externality, and customers are uncertain about the product's/service's value. Because early adopters learn this value, we consider the customers' intrinsic signaling incentives and positive feedback effects. Allowing the seller to choose the sequence of customers' decisions (as an endogenous hierarchy) implies that signaling takes place in multiple rounds. To tackle this hierarchical signaling problem, we develop a novel dynamic‐programming approach that yields analytical expressions of the equilibrium outcomes. The profit‐maximizing structure turns out to be a chain in which the seller sells to the customers one by one. The sequential selling scheme is not only profitable for the seller but also beneficial to the society. The profit‐maximizing pricing exhibits a cream‐skimming property–decreasing prices along the sequence. The lack of seller's commitment is detrimental to the social welfare; nonetheless, the sequential selling still boosts up the seller's profit. When customers are allowed to freely disclose their quantity decisions to others, they willingly comply with the seller's plan of information transmissions. Despite the inherent value uncertainty, the optimal usage of information transmissions requires deliberate restricted access to information among customers. Our result also suggests some congruence between the profit and welfare maximization.

Peer to Peer Lending Syari’ah

The interest of Indonesian people in investing in real sector businesses, particularly MSMEs, is relatively low due to high risks and business uncertainties. Unfortunately, Sharia Financial Institutions have not played an active role in channeling cooperation-based financing. Instead, they have mostly focused on channeling murabahah financing under the buying and selling scheme. However, Sharia P2P Lending can help develop the real sector and have a positive impact on the national economy by reducing bureaucracy and complicated requirements. Sharia P2P Lending is an investment platform in real sector businesses that benefits business actors and investors. The use of Sharia P2P Lending can encourage the public to invest in the real sector because of the following reasons: (1) it provides a safe investment with higher returns compared to conventional investments, (2) it offers access to invest in the real sector with relatively small capital, (3) it allows investors to choose business actors and monitor their investment performance, (4) it has relatively low transaction costs and is easy to conduct transactions online, and (5) it provides protection through risk management and financing management policies carried out by the company.

How Do Consumer Fairness Concerns Affect an E-Commerce Platform’s Choice of Selling Scheme?

Considering consumer fairness concerns, this paper investigates an e-commerce platform’s selling scheme choice when it adopts a wholesale selling scheme or an agency selling scheme to create a contract with a manufacturer. We find that the intensity of the fairness concerns and the platform fee are key factors affecting the platform’s optimal selling scheme choice. Specifically, when these two factors are relatively high or low, the wholesale selling scheme outperforms the agency selling scheme in terms of the e-commerce platform’s profit. Otherwise, the e-commerce platform should adopt the agency selling scheme. Moreover, when these two factors are sufficiently large or small, the wholesale selling scheme will yield a win-win result for the players of the e-commerce supply chain. Interestingly, we find that, considering fairness-minded consumers, a larger platform fee may be harmful to the platform. We also extend the baseline model to consider the consumer heterogeneity of fairness concerns, proportional platform fee, fairness concern about the manufacturer’s profit, and endogenous platform fee. We find that the main insights remain qualitatively unchanged under these model extensions.

An opaque selling scheme to reduce shortage and wastage in perishable inventory systems

Effective management of perishable inventory systems is often strewn with challenges, especially when a strong trade-off relationship exists between shortage and wastage of perishables: A smaller inventory increases the chance to lose sales (leading to higher expected shortage cost), while a larger inventory increases the chance to waste perishables (leading to higher expected wastage cost). The root cause of this strong trade-off relationship is high product demand variability. To mitigate the issue and reduce the cost of operating perishable inventory systems, some grocery stores utilize an opaque selling scheme: selling an anonymous product whose brand or exact specification is shielded from customers at the time of sale. The use of opaque products has now become a popular means to reduce shortage/wastage at grocery stores. However, there has been little discussion of the effectiveness of opaque schemes applied to perishable inventory systems.In this paper, we propose an opaque scheme based on the balancing policy on demand, which tries to average out orders for products. We confirm both analytically and numerically that this opaque scheme effectively reduces product demand variability, thereby reducing both shortage and wastage for perishable inventory systems under a base-stock policy. We also present an analytical formula that reveals insights into the opaque scheme: The ratio between the opaque proportion and the coefficient of variation of product demands plays a key role to determine the effectiveness of our opaque scheme. Furthermore, we provide a rule of thumb to find the threshold opaque scheme parameters needed to achieve the maximum total cost savings for perishable inventory systems. We hope that many retailers selling perishables (e.g., fresh produce and baked goods) find the opaque scheme useful, implement it, and contribute to the reduction of the food wastage.

Implementation of the Decision of the Constitutional Court of the Republic of Indonesia Number 18/PUU-XVII/2019 on the Execution of Fiduciary Security

In economic activities, Banking Institutions and Non-Bank Financial Institutions including Financing Institutions play an important role in running the wheels of economic activities. Because of this important role, financial institutions then developed rapidly to support various economic activities. In Indonesia, there are three types of companies that act as financing institutions, namely financing companies, venture capital companies and infrastructure financing companies. Among the three types of financing institutions, Consumer Financing is a type of financing that provides financing for consumers who intend to buy motorized vehicles, either four-wheeled or two-wheeled, using a buying and selling scheme in installments.To guarantee timely installment payments,consumers provide fiduciary guarantees for motorized vehicles purchased with an installment system, so that if consumers do not fulfill their obligations under a consumer financing agreement, then based on a fiduciary guarantee deed, granting executive power to creditors to execute / withdraw the vehicle that is guaranteed as collateral. fudusia and auction it off to pay off consumer debt. However, the creditor's right to execute was then submitted for a judicial review to the Constitutional Court of the Republic of Indonesia by one of the debtors who broke his promise. The Constitutional Court with its decision Number 18/PUU-XVII/2019 decided not to abolish the executorial power of the fiduciary guarantee deed, as long as certain conditions were met, namely an agreement on breach of contract and the voluntary surrender of the fiduciary object. However, the decision of the Constitutional Court was then interpreted erroneously by the debtor, as if the creditor no longer had executive power. This difference in interpretation becomes a new polemic and problem at the implementation stage, especially in terms of criminal law norms.

The Market for Surprises: Selling Substitute Goods Through Lotteries

Abstract In this paper, we solve the revenue maximization problem of a multi-product monopolist when the products are substitutes. We consider a Hotelling model with two horizontally differentiated goods located at the endpoints of the segment. Consumers are located uniformly on the segment; their valuations for each good are equal to the base consumption value minus distance costs. When the base consumption value is high, the seller maximizes her expected profit by offering a menu of base and opaque goods. In particular, a single half-half lottery over base goods is optimal under concave and linear costs. When base consumption value is low, only base goods are sold. Finally, when base consumption value is intermediate, the optimal mechanism may entail the offering of lotteries with the positive probability of no delivery. Our findings can explain the emergence of opaque goods sales (e.g., hotel bookings without a complete description of the hotel through hotwire.com or priceline.com) as the outcome of the industry’s search for the optimal selling scheme.

Analisis Penerapan Akuntansi Syariah Pada Skema Jual Beli KPR Syariah

This study aims to analyze the application of Islamic accounting in the Islamic credit buying and selling scheme in housing sales at PT MIB and to find out the Islamic law review related to the difference in cash prices and credit prices that have been included in the sales brochure whether there is an element of usury or not. This type of research uses a qualitative study with a descriptive approach. The data sources used are primary data sources and secondary data sources. Data collection techniques using observation, interviews, and documentation. This study uses the triangulation of sources. Data analysis techniques are data collection, data reduction, data presentation, and data verification. The results of PT MIB's research use alternative economic and inflation methods. Based on PSAK 102 Accounting for murabahah and ISAK 101 regarding the recognition of tough murabahah income without any significant risks related to inventory ownership, the use of both methods is permitted. Based on this method, it is time that has economic value so that when there is a deferral of payments, a certain amount of compensation is needed because basically money is the medium of exchange for the public. The faster the rotation, the better. Credit buying and selling mechanism is also allowed in the Qur'an, Hadith, and Ijma.

THE STRATEGIES OF TIANGGE SELLERS TO THE PURCHASING INTEREST OF THE MARKET

This study was conducted in order to highlight the growing ‘tiangge’ industry in the municipality of Taytay, Rizal Philippines where certain dynamics were observed in and between the seller and its clients in the areas of selling and its strategies. Drawn basically from the perspective of the sellers, this research evaluated the kind, style, selling scheme, price and frequently asked questions (FAQ’s) about ready-to-wear (RTW) products and other related commodities sold in Taytay tiangge. The researchers used the Bottom of the pyramid theory, Defensive marketing theory and Consumer Theory which are common and most effective theories when it comes to strategies implementation for Flea Markets, Bazaars and Tiangge in the modern day.  Through descriptive statistics, it was underscored that the top-selling kind of RTW was blouses for women in the price range of 100-150 Php. (Philippine Peso) by wholesale and retail quantities. Other kinds of RTW/commodities include undergarments, curtains, bed sheets, shoes and bags in which the sellers variably offer together with the RTW products. Through a Chi-Square test, the variables drawn from the sellers’ perspective (kinds of RTW products sold, styles of RTW products sold, the selling scheme, and the price range of the RTW products) were correlated to the variables drawn from the purchasing interest of the market (bestseller RTW products sold according to kind, bestseller RTW products sold according to styles, the customers’ scheme of purchasing, price reference of the customers and their frequently asked questions); showing thus the positive significant effects on all variables except on style. Thus, in this study the researchers concluded that the strategies of the sellers are relative to the purchasing interest of the market. However, due to limitations stipulated within the duration of the study, it is further interesting to revisit the other aspect/dynamism of differences between females and males in terms of preferred kinds, styles, quantity and price. Furthermore, a comprehensive study should follow through in the interest of the municipality in the advent of ‘tiangge’ as a thriving industry that could potentially help sustain the local economy.

Auctions vs. Negotiations: Optimal Selling Mechanism with Endogenous Bidder Values

This paper studies the design of the revenue maximizing selling mechanism in a scenario where bidders can make costly investments upfront to enhance their valuations. Unlike the case where bidders' values are exogenously fixed, here it may be profitable for the seller to discriminate among ex ante symmetric bidders. I first identify a sufficient and almost necessary condition under which symmetric auctions are optimal. When this condition fails, the optimal selling mechanism may be discriminatory. I further find that the optimal mechanism in general follows a structure which I call a threshold mechanism. Two extreme examples of the threshold mechanism are symmetric auctions and sequential negotiations. In general, any threshold mechanism can be implemented by a dynamic selling scheme which alternately utilizes auctions and negotiations.

The Market for Surprises: Selling Substitute Goods Through Lotteries

In this paper we solve the revenue maximization problem of multi-product monopolist when the products are substitutes. We consider a Hotelling model with two horizontally differentiated goods located at the endpoints of the segment. Consumers are located uniformly on the segment, their valuations for each good are equal to base consumption value minus distance costs. We consider different specifications for the distance cost function: linear, concave, and convex. When base consumption value is high, the seller maximizes her expected profit by offering a menu of base and opaque goods. A continuum of type-specific opaque goods is optimal under convex costs, whereas a single half-half lottery over base goods is optimal under concave and linear costs. When base consumption value is low, only base goods are sold. Finally, when base-consumption value is intermediate, the optimal mechanism may entail the offering of lotteries with positive probability of no delivery. Our findings can explain the emergence of opaque goods sales (e.g. hotel bookings without complete description of the hotel by hotwire.com or priceline.com) as the outcome of the industries search for the optimal selling scheme.

European Private Law: Up in the Air?

This paper compares the existing rights granted to consumers when they purchase services in the EU, whether in a shop or within a distance selling scheme, with the provisions of Regulation 261/2004. While the works on the new European rules on air passengers’ rights are still ongoing it is important to examine what protection measures the air passengers are currently missing that European consumers may already be enjoying while concluding contracts other than for air transport services. Additionally, I will also discuss whether certain air passengers’ rights in Europe and the methods of providing these rights could serve as a model for the further development of European consumer protection measures. The assumption underlying this comparison is that air transport services are just one of many services that European consumers purchase. Conceivably, consumers should enjoy similar, if not the same, protection regardless of the type of service they are interested in. Special justifications, e.g., of an economic nature, could, however, justify the introduction of divergent rules with respect to air transport services. Therefore, where my research indicates such differences in the protection levels of air passengers and consumers concluding contracts other than for air transport services, I will consider whether these differences could be justified due to the need to protect interests of one of the contractual parties or due to the internal market’s objectives.

Optimal Selling Scheme for Heterogeneous Consumers with Uncertain Valuations

In this paper, we investigate the optimal selling scheme for a capacity-constrained seller who faces both aggregate demand and individual valuation uncertainties. As each consumer privately observes an initial estimate prior to the transactions and an updated information postpurchase, the problem exhibits the sequential screening feature and return policy emerges as part of the optimal selling scheme. We show that the optimal selling scheme nicely resembles the classical multiunit auction design, and the product is returned too often compared to the efficient scenario. Furthermore, even though the postpurchase information update is privately observed by the individual consumers, the seller does not give away additional surplus to the consumers. Our general framework can accommodate various heterogeneities and uncertainties regarding hassle costs, shipping costs, salvage values, and reservation values. Our results go through even if the seller cannot commit to the refund amounts, the seller has flexible capacity, or consumers have multiunit demands.

Reporting suspicions of money laundering and whistleblowing under German law

Outlines the reporting duties of credit institutions in cases of suspicious transactions, for instance when there is no apparent purpose, the transaction does not meet the client’s needs or is unnecessarily complicated; and the reporting procedures, including who must notify the authorities, form requirements, consequences for the transaction, internal procedure, and legal privileges and risks. Continues with the reporting duties of other professionals, including the envisaged changes under the European Union draft guidelines and the implications for legal advisers, who have protested against the proposed changes as a violation of civil rights to secrecy and confidentiality; this view is shared by the European Parliament. Gives a case study of a court decision which acquitted an defence attorney of knowingly accepting a fee derived from drug dealing, while another case convicted two lawyers for knowingly accepting a fee from a pyramid selling scheme; defence attorneys are still excluded from reporting duties, so the legal position is not clear.

Coal and Gas in Great Britain

AT the seventy-third annual meeting of the Institution of Gas Engineers in London on May 26–29, the address of the president, Colonel W. Moncrieff Carr, referred to “perhaps the most serious problem in the history of the Industry” the proposed coal selling scheme, under which not only the prices but also the choice of gas coal would be apparently at the discretion of the coal industry, which would thus acquire uncontrolled monopolistic power. It is feared that the coal industry's policy will be influenced by a desire voiced by its spokesmen and indicated by its commercial actions to discourage the replacement of raw coal by the products of coal carbonisation, even though this conduces to public amenity and hygiene and to private convenience. Moreover, freedom of choice of raw material is vital to any manufacturing industry and especially where the raw material can be so variable as coal.