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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…

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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: 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: 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. 7 no. 4
Type: Research Article
ISSN: 2514-9792

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: 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: 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: 4 June 2024

Ismael Gómez-Talal, Pilar Talón-Ballestero, Veronica Leoni and Lydia González-Serrano

This study aims to examine how dynamic pricing impacts customer perceptions of restaurants and sentiment toward prices via online reputation metrics. In addition, to deepen the…

Abstract

Purpose

This study aims to examine how dynamic pricing impacts customer perceptions of restaurants and sentiment toward prices via online reputation metrics. In addition, to deepen the debate on dynamic pricing, a novel definition is drawn by exploring the specific forms of discrimination that can manifest in different industries.

Design/methodology/approach

Leveraging a comprehensive data set of restaurant reviews sourced from TripAdvisor, the study focuses on restaurants affiliated with one of the largest groups of restaurants in Spain. We used a quasi-experimental method (difference-in-differences), to study how dynamic pricing strategies influence customers’ perceptions of value based on numerical ratings. Meanwhile, we used a Bidirectional Encoder Representations from Transformers model on the textual component of reviews to dissect the emotional nuances of dynamic pricing.

Findings

Results did not reveal a causal impact of dynamic pricing strategies on customers’ perceptions. Moreover, the sentiment analysis shows no heightened negative view after introducing dynamic pricing in restaurants compared to the control group. Contrary to what previous literature suggests, our findings indicate that implementing dynamic pricing does not adversely affect customers’ perceptions or sentiments regarding prices in restaurants.

Research limitations/implications

The quasi-experimental setting of the study presents inherent challenges in establishing causality that require further investigation using controlled experimental settings. Nevertheless, our study reveals that restaurant customers do not perceive dynamic pricing as unfair. This finding is critical for restaurant managers when considering the implementation of dynamic pricing and revenue management strategies. In addition, our study highlights the importance of considering not only numerical ratings but customer sentiment analysis as well. This more holistic approach to assessing the impact of pricing strategies can give restaurant managers a deeper understanding of customer reactions. In addition, a more rigorous definition of dynamic pricing is provided, clarifying its nature and its distinction in using different price discrimination.

Originality/value

This study contributes to the evolving understanding of dynamic pricing strategies’ impact on customers’ perceptions and sentiments in the restaurant industry. It aims to fill the gap in understanding customer reactions to algorithmically determined prices (via revenue management systems such as DynamEat) in this industry. The combination of causal inference and sentiment analysis offers a novel perspective, shedding light on the nuanced connections between dynamic pricing implementation and customers’ emotions.

目的

本研究考察动态定价如何通过在线声誉指标影响顾客对餐厅的感知和对价格的情绪。此外, 为了深化对动态定价的讨论, 通过探索不同行业中可能表现出的具体歧视形式, 提出了一个新的定义。

设计/方法/途径

利用从TripAdvisor获取的餐厅评论的全面数据集, 研究聚焦于与西班牙最大的餐厅集团之一相关联的餐厅。我们采用了准实验方法(差异中的差异), 研究动态定价策略如何根据数值评分影响顾客对价值的感知。同时, 我们运用BERT模型对评论的文本成分进行分析, 以解析动态定价的情感细微差别。

发现

结果没有揭示动态定价策略对顾客感知产生因果影响。此外, 情绪分析显示, 在餐厅引入动态定价后, 与对照组相比, 没有增加消极观点。与以往文献所述相反, 我们的发现表明, 实施动态定价并不会对顾客对价格的感知或情绪产生负面影响。

研究限制/含义

研究的准实验设置存在确立因果关系的固有挑战, 需要通过控制实验设置进一步调查。尽管如此, 我们的研究揭示了餐厅顾客不认为动态定价不公平。这一发现对餐厅经理在考虑实施动态定价和收入管理策略时至关重要。此外, 我们的研究强调, 考虑顾客情绪分析和数值评分的重要性。这种更全面的方法评估定价策略的影响, 可以让餐厅经理更深入地理解顾客反应。此外, 提供了一个更严格的动态定价定义, 澄清了其性质及其在使用不同价格歧视中的区别。

原创性/价值

本研究对于理解动态定价策略对餐厅行业顾客感知和情绪影响的不断发展有所贡献。它旨在填补对客户对算法确定的价格(通过收入管理系统(RMS)例如DynamEat)在此行业中反应的理解空白。因果推断与情绪分析的结合提供了新的视角, 揭示了动态定价实施与顾客情绪之间微妙的联系。

Propósito

Este estudio examina cómo la fijación dinámica de precios impacta en las percepciones de los clientes de los restaurantes y en el sentimiento hacia los precios a través de métricas de reputación en línea. Además, para profundizar en el debate sobre la fijación dinámica de precios, se propone una definición novedosa explorando las formas específicas de discriminación que pueden manifestarse en diferentes industrias.

Diseño/metodología/enfoque

Utilizando un conjunto de datos exhaustivo de reseñas de restaurantes obtenidas de TripAdvisor, el estudio se centra en los restaurantes afiliados a uno de los mayores grupos de restaurantes en España. Empleamos un método cuasiexperimental (diferencias en diferencias) para estudiar cómo las estrategias de precios dinámicos influyen en las percepciones de valor de los clientes basándonos en las calificaciones numéricas. Mientras tanto, empleamos un modelo BERT en el componente textual de las reseñas para desentrañar los matices emocionales de la fijación dinámica de precios.

Hallazgos

Los resultados no revelaron un impacto causal de las estrategias de precios dinámicos en las percepciones de los clientes. Además, el análisis de sentimiento no muestra una visión negativa aumentada después de introducir la fijación dinámica de precios en los restaurantes en comparación con el grupo de control. Contrariamente a lo que sugiere la literatura previa, nuestros hallazgos indican que la implementación de precios dinámicos no afecta negativamente las percepciones o los sentimientos de los clientes respecto a los precios en los restaurantes.

Limitaciones/implicaciones de la investigación

La configuración cuasiexperimental del estudio presenta desafíos inherentes para establecer la causalidad que requieren una investigación más profunda utilizando entornos experimentales controlados. Sin embargo, nuestro estudio revela que los clientes de restaurantes no perciben la fijación de precios dinámica como injusta. Este hallazgo es crítico para los gerentes de restaurantes al considerar la implementación de la fijación de precios dinámica y estrategias de gestión de ingresos. Además, nuestro estudio resalta la importancia de considerar no solo las calificaciones numéricas sino también el análisis del sentimiento del cliente. Este enfoque más holístico para evaluar el impacto de las estrategias de precios puede dar a los gerentes de restaurantes una comprensión más profunda de las reacciones de los clientes. Además, se proporciona una definición de fijación de precios dinámica más rigurosa, aclarando su naturaleza y su distinción en el uso de diferentes discriminaciones de precios.

Originalidad/valor

Este estudio contribuye a la comprensión en evolución del impacto de las estrategias de fijación de precios dinámicos en las percepciones y sentimientos de los clientes en la industria restaurantera. Su objetivo es llenar el vacío en la comprensión de las reacciones de los clientes a los precios determinados algorítmicamente (a través de sistemas de gestión de ingresos (RMS) como DynamEat) en esta industria. La combinación de inferencia causal y análisis de sentimientos ofrece una perspectiva novedosa, arrojando luz sobre las conexiones matizadas entre la implementación de la fijación de precios dinámicos y las emociones de los clientes.

Article
Publication date: 11 December 2023

Xiaojing Zhang and Yulin Zhang

This study highlights the impact of mental accounts on a user's decision-making regarding payment schemes and aims to determine the pricing strategy for the first-enjoy-after-pay…

Abstract

Purpose

This study highlights the impact of mental accounts on a user's decision-making regarding payment schemes and aims to determine the pricing strategy for the first-enjoy-after-pay service offered by the two-sided media platforms.

Design/methodology/approach

This study establishes a game-theoretic model and utilizes backward induction to derive the equilibrium price by maximizing the monopolist's profit.

Findings

The findings indicate that the conditions for a two-sided media platform to offer the first-enjoy-after-pay service depend on the trade-off between pleasure attenuation and pain buffering and the effect of time discounts. Moreover, the authors found that the time discount is a critical factor in determining pricing strategies under various payment schemes offered by the platform.

Research limitations/implications

This work adopts a uniform pricing strategy for users who opt for either immediate or post-payment schemes. Nevertheless, it is important to note that this approach has limitations in terms of offering discriminatory pricing for those who choose both payment schemes.

Practical implications

This analytical work provides valuable insights for two-sided media platforms to optimize their payment scheme strategies and pricing considering the influence of a user's mental account.

Originality/value

In a two-sided media platform, the authors provide applicable conditions for the platform to offer first-enjoy-after-pay service considering the effect of mental accounts. Further, the authors show the optimal pricing strategy under different payment schemes provided by the platform.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 36 no. 5
Type: Research Article
ISSN: 1355-5855

Keywords

Open Access
Article
Publication date: 14 May 2024

Yanhong Gan, Xingyu Gao, Wenhui Zhou, Siyuan Ke, Yangguang Lu and Song Zhang

The advanced technology enables retailers to develop customer profile analysis (CPA) to implement personalized pricing. However, considering the efficiency of developing CPA, the…

Abstract

Purpose

The advanced technology enables retailers to develop customer profile analysis (CPA) to implement personalized pricing. However, considering the efficiency of developing CPA, the benefit to different retailers of implementing more precise personalized pricing remains unclear. Thus, this essay aimed to investigate the impact of efficiency on participants’ strategies and profits in the supply chain.

Design/methodology/approach

A two-stage game model was introduced in the presence of a manufacturer who sets his wholesale price and a retailer that decides her CPA strategy. The equilibrium results were generated by backward induction.

Findings

Most retailers are willing to develop the highest CPA to implement perfect personalized pricing, but those inefficient retailers with high production costs would like to determine a middle CPA to implement bounded personalized pricing. The retailers’ profits may decrease with the efficiency of developing CPA when the efficiency is middle. In this case, as the efficiency improves, the manufacturer increases the wholesale price, resulting in lower demand and thus lower profits. Moreover, define a Pareto Improvement (PI) strategy as one that benefits both manufacturers and retailers. Therefore, uniform pricing is a PI when the unit cost is high and the efficiency is low; personalized pricing is a PI when the unit cost is low and the efficiency is low or high; otherwise, there is no PI.

Originality/value

This study is the first that investigates how the retailer develops CPA to implement personalized pricing on a comprehensive spectrum, which can provide practical insights for retailers with different efficiencies.

Details

Modern Supply Chain Research and Applications, vol. 6 no. 2
Type: Research Article
ISSN: 2631-3871

Keywords

Article
Publication date: 5 December 2023

Arvind Shroff, Bhavin J. Shah and Hasmukh Gajjar

Pay-what-you-want (PWYW) is a pricing strategy implemented in a variety of settings like supermarkets and museums, in which consumers determine the price they are willing to pay…

Abstract

Purpose

Pay-what-you-want (PWYW) is a pricing strategy implemented in a variety of settings like supermarkets and museums, in which consumers determine the price they are willing to pay for a product or service based on their perceived utility. The authors propose an analytical model to investigate the impact of PWYW delivery pricing on the online food delivery (OFD) platforms.

Design/methodology/approach

Using a game-theoretic model, the authors characterize the equilibrium as a function of the platform's average delivery cost and the consumer's social preferences parameters like fairness and reciprocity. The authors derive the parametric conditions under which PWYW generates higher profits for the platform compared to the traditional pay-as-asked delivery pricing.

Findings

For the PWYW strategy to be profitable, the average delivery cost to the platform should be low. Therefore, OFD platform managers should focus on reducing delivery costs. The authors also identify the feasible region in which the platform managers need to maintain the consumer's social preferences.

Practical implications

Under PWYW, the authors recommend that the platform managers impose a minimum delivery fee which consumers can use as a benchmark to minimize zero delivery fee payments and consumers' free-riding tendencies simultaneously. This allows OFD platforms to extract online orders from highly price-conscious consumers.

Originality/value

This is one of the first studies to explore the innovative application of PWYW to a particular segment of delivery pricing in OFD platforms. The authors establish that the overall consumer surplus and social welfare are higher under the PWYW strategy, forming a solid ground for its implementation in OFD platforms.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 36 no. 5
Type: Research Article
ISSN: 1355-5855

Keywords

1 – 10 of over 11000