Online retailers can easily provide historical prices and future prices for consumers expect to reference, at the same time this convenience makes difficult for retailer's dynamic pricing policy, strategic consumers will make decision of buying or not buying according to the future price of product and historical reference prices, this judgment will deeply influence the retailer's profits. The paper combines consumers' strategic behavior and reference price effect, accurately describes retailers' dynamic pricing policy under consumers influenced by historical and expected price, establishes the multi-stage dynamic pricing policy model, simplifies two stage model to the normal and the clearance model, puts forward two kinds of different pricing strategies and gives two strategy implementation conditions, discusses the two stage and the optimal price maximum expected profit with consumer utility discount factor, strategic consumer proportions, reliance extent of historical prices. The conclusions indicate that ignoring strategic behavior and consumer price reference effect will bring to the retailers profit large negative effect.
Key words
dynamic pricing /
strategic consumer /
reference effect /
revenue management
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References
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Footnotes
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