Search results

Advances in technology, operations research, and data driven pricing and marketing are leading pricing strategy into new and untested waters – toward dynamic pricing, and variable pricing strategies, which ultimately require changes in how we view pricing strategy. The dominant view of pricing strategy is that pricing goals, objectives, and strategies should be formulated a priori, and should be consistent with marketing and corporate strategies – deliberate pricing strategy. This chapter argues that firms need to develop new strategic pricing skills that lead to more improvisational, innovative, or adaptive pricing strategies. I call this type of price strategy-making emergent pricing strategy. Innovative pricing strategies that the organization judges, or senses to be effective, are repeated, shared, expanded, and refined into successful pricing patterns that, over time and across situations, become pricing strategy. Thus, rather than specifically designing pricing strategy to achieve a goal, here the organization acts upon a price innovation that seems to make sense for this customer, this market segment, this setting, and this situation, then interprets the outcomes, signals, and reactions that seem to flow from the pricing action, and shares and encourages adoption and adaption by others in the organization. Emergent pricing strategy is particularly useful in unstable, turbulent, and complex product and market environments in which price-sensitive buyers wield significant power and influence.

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.

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.

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.

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.

This study aims to explore optimal pricing strategies for innovations with direct network externalities – the effect that the number of adopters of an innovation has on the utility of the innovation to other potential adopters. Examples of such innovations are fax machines, e‐mail, cellular phones, and software programs such as word processors. The success of these innovations requires a minimum number of adopters.

The paper uses agent‐based modeling and simulation.

The relationship between price and net present value (NPV) of revenue resembles an asymmetric inverse U‐shape. A low‐pricing strategy outperforms high‐pricing, while a moderate‐pricing strategy outperforms both low‐ and high‐pricing strategies. Moreover, heterogeneity of consumer price sensitivity positively affects the NPV of sales.

Pricing durable new products with network externalities is more challenging than other types of innovations. The results indicate that firms can maximize their NPV by adopting a moderate pricing strategy. Moreover, firms must consider heterogeneity of consumer price sensitivity along with the market price elasticity when making pricing decisions. Detailed strategic implications and recommendations are discussed.

Several recent studies have called for examining pricing strategies for new products with network externalities. The study findings challenge the common wisdom that a penetration pricing strategy is an optimal approach for durable products with network externalities. Moreover, while other studies have highlighted the importance of market price elasticity, extensive simulation experiments conducted in this study show that heterogeneity of consumer price sensitivity is an important factor that must be considered. Finally, the study presents an agent‐based modeling approach for exploring optimal pricing of innovations with network externalities.

This article aims to address the relationship between price strategies and price‐setting practices. The first derive from a normative tradition in the pricing literature and the latter from a descriptive tradition. Price strategies are visible in the market, whereas price‐setting practices are hidden behind the boundaries of an organization.

The study deals with the relationship between price strategies and price‐setting practices that refer to the use of customer value, competition, and cost information. Hypotheses are tested on survey data on 95 small and medium‐sized manufacturing and service firms in The Netherlands.

The results show that price strategies and price‐setting practices are related because strategies are implemented through price‐setting practices. However, some firms do not pursue any of the strategies indicated by pricing theory, some firms engage in practices for no clear strategic reasons, and some firms insufficiently engage in appropriate practices to implement their strategic choices.

The results are limited to small companies. Researchers should examine why firms may not pursue any price strategy that is offered by pricing theory. They may also focus on organizational learning and pricing capabilities.

Managers need greater awareness about the price strategies they can use, should be cautious about a potential mismatch between price strategies and price‐setting practices, and should reassess whether their firms are capable of engaging in the appropriate practices.

Linking price strategies to price‐setting practices reduces conceptual confusion in the pricing literature and may help to specify the gap between pricing theory and practice.

The purpose of this paper is to (1) investigate the effect of freshness on consumers' willingness to pay, (2) derive static and dynamic pricing strategies and (3) compare the effect of these pricing strategies on a retailer's revenue and food waste. This investigation helps to reveal the potentials of dynamic pricing strategies for building more sustainable business models.

The authors conduct an online experiment to measure consumers' willingness to pay for fresh and three-days’ old strawberries. The impact of freshness on willingness to pay is analysed using univariate tests and regression analysis. Pricing strategies are compared using a Monte Carlo simulation.

The results of this study show that freshness largely determines consumers' willingness to pay and price sensitivity. This renders dynamic pricing a promising strategy from an economic point of view. The results of the simulation study show that food waste can be reduced by up to 53.6% with a dynamic pricing instead of a static pricing strategy in the case that there are as many consumers as strawberry packages in the inventory. Revenue can be increased by up to 10% compared to a static pricing strategy based on fresh strawberries.

This study suggests that food retailers can improve their revenue when switching from static to dynamic pricing. Furthermore, in most cases, food retailers can reduce food waste with a dynamic instead of a static-pricing strategy, which might help to improve their image through a more sustainable business model and attract additional consumers.

This study is the first to analyse the possibility of using food freshness to design a dynamic pricing strategy and to analyse the impact of such a pricing strategy on both, a retailer's revenue and a retailer's food waste.

Crowdfunding, especially reward-based crowdfunding, has quickly evolved into a commonly used vehicle for innovating entrepreneurs to develop their products. Many crowdfunding platforms allow creators maximum flexibility in terms of the prices and rewards offered in a project to gain sufficient capital. However, creators need to understand how to design project rewards and how to select a pricing strategy, in addition to whether the creator should spend resources on designing multiple rewards of varying quality. The purpose of this paper is to address these issues by answering whether and why there are significant differences in the application of early-bird and versioning pricing strategies in crowdfunding.

This paper develops a two-stage dynamic game model with incomplete information, proposes a corollary calculated by analyzing a perfect Bayesian equilibrium, and then tests Corollary 1 by empirical analysis.

Contrary to the findings of other studies, the results show that an early-bird pricing strategy is likely better than a versioning pricing strategy for earning greater revenue in a crowdfunding context, on average. This finding means that creators do not have to spend as much in designing rewards of various qualities; rather, they should only provide multiple price options for high-quality rewards. However, if the heterogeneity of target backers’ valuations and the quality difference between two types of products are adequately high, a versioning pricing strategy may be a good choice for creators.

This paper provides a reference for creators regarding the selection of pricing strategies and the design of reward quality when launching crowdfunding projects.

This paper explains an interesting and practical issue in the design of reward quality and the selection of a pricing strategy after fully considering the role of the crowdfunding all-or-nothing mechanism and special backer behavior.

The purpose of this paper is to research the price strategies of online knowledge payment product by considering network externality in the C2C sharing economy.

Considering the characteristics of online knowledge goods and the social network externality of consumers, this study establishes a consumer utility function. On this basis, a multistage game pricing model of online knowledge products is established based on three kinds of network price strategies under a completely competitive market structure. It also analyzes the influence of consumer social network structure and consumer utility on online knowledge product pricing and producer profit, as well as the influence of consumer quantity and discount rate on pricing strategy.

The consumer social network and consumer utility affect the pricing of online knowledge product under different price strategies. In the growth period of the platform, adopting the price discrimination strategy, the profit of producers is significantly higher than that of other price strategies, and producers should choose effective price strategies for reasonable pricing in combination with their own sales objectives.

This study enriches the literature on the pricing model of online knowledge payment product and owns a practical significance to guide the knowledge producers’ marketing strategies to increase profit.

The purpose of this study is to compare the impact of multi‐period pricing, as an example of more dynamic pricing and discounting strategy with that of a present less dynamic alternative on customer satisfaction and consumers' willingness to make trade‐offs between price and remaining shelf‐life.

The authors conducted interviews with three food retail managers in South Korea to gather practical information about the management of perishable foods, which informed the design of a survey in which consumers in South Korea were questioned about their perceptions of the two strategies, with respect to nine perishable food products in three categories. The data collected were analysed by one‐way ANOVA and the t‐test.

The findings of this research present an improved understanding of the impact of a multi‐period pricing strategy on consumer satisfaction and customer behaviour for perishable foods. The conclusions have the potential to significantly assist food retailers to understand the consumers' perspective on the benefits of a more dynamic pricing strategy.

The findings suggest that food retailers can enhance customer satisfaction by offering an earlier but lower discount, and increasing it as perishable food items approach their expiry date, rather than a higher discount when the expiry date is imminent.

The findings in this study are significant since they serve as the first step in measuring the value of dynamic pricing approaches that provide better trade‐off options between price and remaining shelf‐life from consumers' perspectives.

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.

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.

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.

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.

In this paper, we examine the elements of pricing approaches in export businesses and their performance in an international environment. The elements of pricing approaches consist of cost-based, competitor-based, and value-based decisions made by different levels of management. By providing an integrated, holistic view, we investigate how different types of export-pricing strategies influence export performance, and which elements strengthen or attenuate the outcomes of strategic actions.

Using data from a survey of 172 export managers, we test our hypotheses in a two-step approach. First, we use an unsupervised approach to group the export companies and to validate the cluster solution internally and externally. Second, we test our hypotheses regarding export performance.

The results show that the types of export-pricing strategies are unequally distributed, and the elements of the strategies have different complexities. Export performance varies significantly by type of pricing orientation used.