Search results

1 – 10 of over 11000
Article
Publication date: 5 December 2023

Xiubin Gu, Yi Qu and Zhengkui Lin

The purpose of this study is to investigate the pricing strategies for knowledge payment products, taking into account the quality level of pirated knowledge products, in the…

95

Abstract

Purpose

The purpose of this study is to investigate the pricing strategies for knowledge payment products, taking into account the quality level of pirated knowledge products, in the context of platform copyright supervision.

Design/methodology/approach

This study abstracts the knowledge payment transaction process and aims to maximize producer's revenue by constructing a pricing model for knowledge payment products. It discusses pricing strategies for knowledge payment products under two scenarios: traditional supervision and blockchain supervision. The analysis explores the impact of pirated knowledge products quality level and blockchain technology on pricing strategies and consumer surplus, while providing threshold conditions for effective strategies.

Findings

Deploying blockchain technology in platform operations can significantly reduce costs and increase efficiency. In both scenarios, knowledge producer needs to balance factors such as the quality of pirated knowledge products, the supervision level of platform, and consumer surplus to dynamically adjust pricing strategies in order to maximize his own revenue.

Originality/value

This study enriches the literature on the pricing models of knowledge payment products and has practical significance in guiding knowledge producer to develop effective pricing strategies under copyright supervision.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 17 March 2023

Qi Sun, Yaya Gao, Qihui Lu and Yingyi Yan

Different external supply scenarios faced by the retailers will affect their choice of strategy when supply is disrupted and becomes far less than demand, urgently. This study…

Abstract

Purpose

Different external supply scenarios faced by the retailers will affect their choice of strategy when supply is disrupted and becomes far less than demand, urgently. This study focuses on analyzing both demand and supply side response strategies to meet customer demand and reduce the impact of the shortage during supply disruptions.

Design/methodology/approach

According to the quantity of products that the external market can provide, the external supply scenarios were divided into sufficient-type external supply and learning-type external supply. A two-echelon perishable goods supply chain was analyzed, and three kinds of contingency strategy models for downstream retailers were investigated. First, in the sufficient external supply scenario, the optimal price and transshipment quantity to maximize retailer's profits is discussed. Second, in the scenario of learning-type external supply, this study analyzes the optimal decision in three mechanisms of the hybrid strategy and their application: price priority mechanism, quantity priority mechanism and price–quantity balance mechanism. Furthermore, the influence of penalty cost and supply on the priority orders of different mechanisms was studied.

Findings

Results show that comparing the two pure strategies (pricing strategy and transshipment strategy)it was noted that the hybrid strategy produces the best results in sufficient-type external supply scenario. In the learning-type external supply scenario, a numerical study has shown the existence of three areas in case of penalty cost and supplier's capacity, and each areas has different priority orders of the three mechanisms. Under the situation of learning external supply, the retailer's optimal strategy is affected by parameters such as penalty cost and supply volume.

Originality/value

The main innovation of the work lies in the following: First; the external supply situation was divided into sufficiency type and learning type, which improves the external situation faced by retailers after the outbreak of emergencies, helps retailers understand the external situation, conforms to the actual situation and has certain practical application value. Second; in the context of learning external supply, there are three coping strategies for retailers, including: Price priority mechanism, Quantity priority mechanism and Pricing and transshipment balance mechanism. This will help retailers make strategic choices, make more scientific management decisions and improve the supply chain emergency management theory. Third; the demand side response was managed through the change of external supply during supply side recovery period and supply disruption. The proposed model enables managing and analyzing supply disruption efficiently and effectively via handling uncertainty by considering all aspects of decision-making process. The proposed model can be applied in various fields such as vegetable and fruit, fresh food, etc.

Details

Kybernetes, vol. 53 no. 6
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 6 May 2024

Shu Wang, Dun Liu and Jiajia Nie

It is only logical that a firm aims to make a profit after entering the market. However, some firms enter the market with the goal of market expansion and even burn money to…

Abstract

Purpose

It is only logical that a firm aims to make a profit after entering the market. However, some firms enter the market with the goal of market expansion and even burn money to pursue market share, which is counterintuitive in practice. To explore the theoretical foundations behind this rare phenomenon, this paper focuses on discussing the impact of the market expansion entry strategy on the entrant firm and the incumbent firm.

Design/methodology/approach

Using a game theory model of a supply chain with an incumbent and an entrant, this paper explores the mathematical conditions for the entrant to adopt either the traditional or the market expansion entry strategy and investigates the incumbent’s benefits and losses under different entry strategies.

Findings

The results show that when the market-expansion effect and the selling price ceiling are moderate, the entrant firm always adopts the market expansion entry strategy, and the incumbent firm obtains a free ride from the entrant firm and benefits from it. The entire industry profits and the industry consumer surplus are increased. In particular, we further investigate the cases in which the incumbent firm has a first-mover advantage or there is a troublesome cost, and the results confirm the aforementioned conclusions.

Originality/value

By considering market share as the entrant’s goal, this paper contributes to the dual-purpose literature. Moreover, based on the model’s mathematical results, this paper offers relevant management insights for the entrant and its stakeholders in the e-commerce platform.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 16 April 2024

Hongyu Hou, Feng Wu and Xin Huang

The development of the digital age has made data and information more transparent, enhancing the strategic perspectives of both buyers (strategic waiting) and sellers (price…

Abstract

Purpose

The development of the digital age has made data and information more transparent, enhancing the strategic perspectives of both buyers (strategic waiting) and sellers (price fluctuations) in their decision-making. This research investigates the optimal dynamic pricing strategy of the content product developer in relation to their consideration of consumer fairness concerns to elucidate the impact of consumer fairness concerns on the dynamic pricing strategy of the developer.

Design/methodology/approach

This paper assumes that monopolistic content developers implement a dynamic pricing strategy for the content product. Through constructing a two-period dynamic pricing game model, this research investigates the optimal decisions of the content developer, contingent upon their consideration or disregard of consumer fairness concerns. In the extension section, the authors additionally account for the influence of myopic consumers on these optimal decisions.

Findings

Our findings reveal that the degree of consumer fairness concerns significantly influences the developer’s optimal dynamic pricing decision. When a developer offers content products with lower depth, there is a propensity for the developer to refrain from incorporating consumer fairness concerns into a dynamic pricing strategy. Conversely, in cases where the developer offers a high-depth content product, consumer fairness concerns benefit the developer. Furthermore, our analysis reveals a consistent benefit for the developer from the inclusion of myopic consumers.

Originality/value

Few studies have delved into the conjoined influence of consumer fairness concerns and strategic behavior on dynamic pricing strategy. Our findings indicate that consumer fairness concerns can enhance the efficiency of the value chain for content products under specific conditions. This paper not only enriches the existing literature on dynamic pricing by incorporating consumer fairness concerns theoretically but also offers practical insights. The outcomes of this research can guide content product developers in devising optimal dynamic pricing strategies.

Details

Industrial Management & Data Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 5 March 2024

Zhongfeng Sun, Guojun Ji and Kim Hua Tan

This paper aims to study the joint decision making of advance selling and service cancelation for service provides with limited capacity when consumers are overconfident.

Abstract

Purpose

This paper aims to study the joint decision making of advance selling and service cancelation for service provides with limited capacity when consumers are overconfident.

Design/methodology/approach

For the case in which consumers encounter uncertainties about product valuation and consumption states in the advance period and are overconfident about the probability of a good state, we study how the service provider chooses the optimal sales strategy among the non-advance selling strategy, the advance selling and disallowing cancelation strategy, and the advance selling and allowing cancelation strategy. We also discuss how overconfidence influences the service provider’s decision making.

Findings

The results show that when service capacity is sufficient, the service provider should adopt advance selling and disallow cancelation; when service capacity is insufficient, the service provider should still implement advance selling but allow cancelation; and when service capacity is extremely insufficient, the service provider should offer spot sales. Moreover, overconfidence weakens the necessity to allow cancelation under sufficient service capacity and enhances it under insufficient service capacity but is always advantageous to advance selling.

Practical implications

The obtained results provide managerial insights for service providers to make advance selling decisions.

Originality/value

This paper is among the first to explore the effect of consumers’ overconfidence on the joint decision of advance selling and service cancelation under capacity constraints.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 6 October 2023

Thowayeb Hassan and Mahmoud Ibraheam Saleh

The study aims to investigate how attribution theory in the context of pricing strategies can help tourism destinations recover from the negative impacts of the COVID-19 pandemic.

Abstract

Purpose

The study aims to investigate how attribution theory in the context of pricing strategies can help tourism destinations recover from the negative impacts of the COVID-19 pandemic.

Design/methodology/approach

The study adopted a qualitative research design using semi-structured interviews to address the lack of research in this area. Interview participants included tourists and tourism customers. The interview responses were then analyzed using “Nvivo” qualitative data analysis software to identify critical themes regarding applying attribution theory to pricing strategies.

Findings

The findings revealed that tourists prefer bundled and hedonic pricing strategies that integrate the service providers' pricing strategies' locus of control, stability and controllability. Tourists do not favor dual pricing strategies unless the reasons for price controllability or stability are justified. Tourists also prefer the controllable pay-what-you-want pricing strategy. Although tourists accept dynamic pricing, certain conditions related to price locus, stability and controllability must be met.

Practical implications

The research shows tourists prefer pricing strategies that give them control and flexibility, like bundled packages and pay-what-you-want models. Service providers should integrate pricing strategies that transparent costs and justify price fluctuations. While dynamic pricing is accepted if necessitated by external factors, tourists are wary of unnecessary price changes. Providers can build trust and satisfaction by explaining pricing rationale and offering controllable options like bundles.

Originality/value

The study contributes to the theory by applying attribution theory to the context of pricing strategies in tourism. It also provides innovative recommendations for tourism managers on how to use pricing strategies after the COVID-19 pandemic. The findings offer new insights that extend beyond previous research.

Details

Journal of Hospitality and Tourism Insights, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9792

Keywords

Article
Publication date: 12 January 2023

Guoli Wang and Chenxin Ma

Motivated by the wide application of procurement strategies in retailing, this paper aims to examine the effect of procurement strategies on decisions and profits and strategic…

Abstract

Purpose

Motivated by the wide application of procurement strategies in retailing, this paper aims to examine the effect of procurement strategies on decisions and profits and strategic inventory (SI) is considered.

Design/methodology/approach

The game-theoretic models are developed under a two-period fresh product supply chain (FSC), and consist of the mode of purchasing products only in the first period without SI (Scenario S), the mode of purchasing products in every period without SI (Scenario T) and the mode of purchasing products in every period with SI (Scenario TS).

Findings

Conducting the calculating and comparing, some major findings can be concluded. In general, two-period purchasing strategies (Scenarios T and TS) promote a higher freshness-keeping effort than the single buying strategy (Scenario S). Regarding the pricing strategy, SI and Scenario S can both contribute to obtaining a lower wholesale price, the retailer's pricing is relatively complicated and hinges on the consumer's sensitivity to freshness-keeping effort and the holding cost. Besides, comparing the sales quantity and the profit, the authors find that Scenario TS stimulates more demands and brings more profits for the manufacturer. However, Scenario TS is not the optimal selection for the reason that SI sometimes hurts the retailer and even the whole supply chain. Whereas, when the holding cost is in a certain range, Scenario TS will lead to a win-win situation.

Originality/value

The main findings of this study can give the enterprises some advice on the procurement strategies of fresh products and the decisions of pricing and the freshness-keeping effort.

Details

Kybernetes, vol. 53 no. 4
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 2 May 2023

Yiwei Su and Mingyu Tian

In this paper, the authors explore the consequences of showrooming and price matching strategy to combat showrooming under the consideration that brick-and-mortar (BM) stores and…

Abstract

Purpose

In this paper, the authors explore the consequences of showrooming and price matching strategy to combat showrooming under the consideration that brick-and-mortar (BM) stores and online retailers hold different costs.

Design/methodology/approach

The authors use a duopoly model to analyze the impact of showrooming behavior on competition between a BM store and an online retailer with different types of customers and different costs. Then, they consider the price matching strategy that a BM store could employ to combat showrooming and explore the effect of such a strategy.

Findings

Showrooming behavior is detrimental to the profit of the BM store, and the online retailer suffers a loss of their profit unless the relative cost of the BM store is high and only part of the customers exhibit showrooming behavior. As the fraction of customers who seek price matching increases, profits of both the BM store and the online retailer initially decrease and then may increase, even if there is no showrooming.

Originality/value

Unlike existing studies that ignore different costs between online and offline retailers, the authors set different costs between the BM store and the online retailer to consider the effects of showrooming and price matching strategy.

Details

International Journal of Retail & Distribution Management, vol. 51 no. 7
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 19 August 2022

Xigang Yuan, Zujun Ma and Xiaoqing Zhang

This paper investigates the dynamic pricing strategy of a firm for the successive-generation products under the conditions of the limited trade-in duration and strategic…

Abstract

Purpose

This paper investigates the dynamic pricing strategy of a firm for the successive-generation products under the conditions of the limited trade-in duration and strategic customers. Further, it explores the effect of a limited trade-in duration on the choice of the myopic and strategic customers, besides the optimal dynamic pricing and trade-in strategy of the firm.

Design/methodology/approach

Based on the choice behavior of the myopic and strategic customers, the authors have developed a two-period game-theoretic analytical model to decide the optimal retail prices of the successive-generation products and the optimal trade-in rebate when the firm adopts a dynamic pricing strategy and then investigate three extensions of the basic model to discuss the change in the results owing to the relaxation of certain conditions.

Findings

The authors find from the results that, in terms of profit maximization, it is better to extend the limited trade-in duration, and hence, the firm should implement a dynamic pricing strategy. However, in the situation of using a static pricing strategy, the firm should extend the limited trade-in duration only if the incremental value of the new generation products is below a certain threshold. Moreover, the firm should use a dual rollover strategy instead of a single rollover one. If all customers in the market are myopic, then the firm should also extend the limited trade-in duration.

Research limitations/implications

This study mainly discusses the impact of limited trade-in duration on the firm's dynamic pricing strategy when facing strategic customers, which provides several directions for future research. First, if the government offers subsidies to consumers, how will strategic consumers make purchase decisions? How would the enterprise make its pricing decision? Second, when asymmetric information exists between consumers and firms, how will it affect consumers' choice behavior and firms' pricing decisions? All these issues are worth exploring in the future.

Practical implications

These results offer certain managerial insights for the firm in the decision making on pricing within the trade-in program.

Originality/value

This is the first work to study the dynamic pricing strategy of the firm for the successive-generation products under the conditions of the limited trade-in duration and strategic customers. Further, this work discusses the changes in results owing to the relaxation of certain conditions.

Details

Kybernetes, vol. 52 no. 11
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 15 February 2022

Xiaonan Zhang, Xiubin Gu and Yi Qu

The 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…

Abstract

Purpose

The 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/approach

Considering 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.

Findings

Consumer 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/value

This 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.

1 – 10 of over 11000