A Study On Perishable Products' Pricing Considering Consumers' Overconfidence Behavior

Consumers' behavior is closely related to the retailers' pricing decision.Under the influence of psychological bias,cognitive bias,emotional and social preferences and other incomplete information factors,consumers are boundedly rational in their purchase decision making processes.From the perspective of consumer behavior,considering the interaction between the consumer and retailer are very crucial to the retailer's pricing decision on perishable products.In the retailer's pricing decision process,in addition to consumer behavior consideration,it is necessary to consider the upstream manufacturer's decision-making and game playing behavior.Aiming at perishable products,among previous studies on consumer overconfidence and pricing of the perishable product,by using comparative static analysis,dynamic programming and game theory,this dissertation studied the perishable products' pricing considering consumers' overconfidence behavior in case of single revenue stream,two revenue streams,revenue sharing and dual channel environment.Research conclusions improve the existing revenue management and pricing theory to a certain extent,help the enterprise take appropriate marketing strategies with these consumers to improve pricing implementation effect and improve the overall performance.Firstly,the perishable products' pricing in consideration of consumers'overconfidence behavior under single revenue stream was studied.Under the setting that single retailer in the market selling single products without inventory limitation,the advance selling price decision is studied in consideration of consumers'overconfidence behavior.Results show that:the advance selling price in the market with overconfident consumer is higher that without overconfident consumers.The growth rate of the advance selling price decreases when the overconfidence level increases.When the overconfidence level is high,the advance selling price increases as the risk aversion degree increases.When the confidencelevel is low,the retailer should lower the advance selling price as consumers' risk aversion degree increases.When the product valuation is uncertain,advance selling is not always beneficial to the retailer.The existence of consumer overconfidence has changed the advance selling's attractiveness to the retailer in the only consideration of risk averse consumers.Then,the perishable products' pricing in consideration of consumers'overconfidence behavior under two revenue streams was studied.Under the low-cost airline industry background,this dissertation studied the flight ticket's advance selling pricing in the set of monopoly environment.In consideration of ancillary revenue stream in the expected revenue function,how the no-show phenomenon would affect the ticket price and revenue.Results show that:there is the optimal price policy in consideration of consumer no-show.The optimal selling price is affected by the no-show probability,the time to flight departure and the remaining inventory level.When the no-show probability is high and the remaining inventory level is moderate,the low-cost airline should lower the price;when the no-show probability is high and the remaining inventory level is low,the low-cost airline should raise the price.Next,the perishable products' pricing in consideration of consumers'overconfidence behavior under revenue sharing was studied.Besides the consideration of consumer behavior in the decision-making context,the upstream manufacturer's decision was also involved.The retailer's optimal price and the revenue sharing ratio were analyzed from the revenue sharing perspective.Results show that:The wholesale price and retail price in the market with overconfident consumers are lower than that without overconfident consumers.The existence of overconfident consumers will affect profits of the manufacturer and retailer no matter centralized or decentralized.The revenue sharing contract can coordinate the supply chain,and the profit can be arbitrarily distributed between the manufacturer and the retailer when the revenue sharing ratio is within the certain range.Lastly,the perishable products' pricing in consideration of consumers'overconfidence behavior under dual channel environment was studied.The traditional single retail channel was extended to the dual channel structure with the traditional retail channel and network marketing channels.The dissertation analyzed the impact of consumer overconfidence on the retailer's wholesale price decision and the manufacturer's wholesale price decision and direct sale price decision.Results show that:no matter consumers are mean or precision overconfidence,there are maunfacturer's optimal wholesale price and direct sale price,and retailer's optimal retail price.