Abstract
Faced with the uncertainty of demand in the market, more and more retailers prefer to adopt the new selling method known as presale, especially premium presale. Based on the behavioral characteristics of strategic and myopic consumers, this paper firstly establishes a two-stage model of presale and spot sale, then investigates the influence of the reference price effect on retailer’s decision-making behavior. Secondly, we research a new optimized presale scheme with dual-driven factors of price and advertising. We express the only presale price to maximize the profit of the retailer in different scenarios. And we find that the retailer’s profit is deeply affected by the intensity of reference price effect. Weak reference effect is harmful to the retailer’s profit while high level of it is inversely profitable. Besides, increasing the reference price by advertising indeed improves the retailer’s profit. And the retailer will benefit from consumers’ strategic waiting behavior adopting this dual-driven strategy if the quantity of strategic consumers in the market is sufficient.
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Acknowledgements
The funding supports from the National Natural Fund Project (71871150); the Innovation Spark Project Library of Sichuan University (2018hhs-35); the Project of Science and Technology Department of Sichuan Province (2019JDR0148).
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Zhou, Q., Guo, C. (2021). Presale Scheme Optimization of Short Life Cycle Products Considering Reference Price Effect. In: Xu, J., Duca, G., Ahmed, S., García Márquez, F., Hajiyev, A. (eds) Proceedings of the Fourteenth International Conference on Management Science and Engineering Management. ICMSEM 2020. Advances in Intelligent Systems and Computing, vol 1191. Springer, Cham. https://doi.org/10.1007/978-3-030-49889-4_7
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DOI: https://doi.org/10.1007/978-3-030-49889-4_7
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