Research On Pricing Of New Experiential Product Decision Based On Seeding Strategy

Consumers’ quality perception of new experiential products is uncertain,which will not only reduce the effectiveness of consumers’ purchases,but will also adversely affect the pricing decisions of firms and cause loss of profits.In the era of mobile internet,firms usually promote the interaction between consumers and the dissemination of online consumer reviews of products by implementing seeding strategy,thus providing a new way for consumers to understand the quality of experiential products.This thesis introduces consumer online reivews factor into the pricing decisions of experiential new products,studies the pricing models of experiential new products in different situations when consumers are uncertain about the quality of experiential products,and explores how to use seeding strategy to optimize pricing decisions of firms.Specifically,the specific work of the research is shown as follows.Firstly,the thesis considers the situation of pricing decision for new products of firm in a monopolistic market,and studies the ways in which firm releases information and makes pricing decision when seeding strategy exists.The product pricing and profit of the firm under the seeding strategy and the quality disclosure strategy are compared,and the intrinsic motivation and feasible range of the firm to implement the seeding strategy are given.The results show that when the quality disclosure is not applicable due to high cost,if the product quality is high but consumers’ perception is low,firm can take advantage of online reivews and implement seeding strategy to increase profit.In the case that the quality disclosure strategy is feasible,the company can also choose a medium-level seeds to obtain higher profit,thereby saving costs and avoiding waste.In addition,with the increase in the strength of online reivews,the scope of firm’ implementation of seeding strategy will become larger.Secondly,considering the optimal pricing decision-making problem of firm in a horizontal competitive environment,a pricing model for innovative products of duopoly firms is constructed.Studying how the innovative firm can use seeding strategy to affect the changing process of consumers’ perceptions of the quality of new attributes and the pricing decisions of competing companies when consumers are uncertain about the quality of new attributes of innovative products.The results show that when uninformed consumer do not have a high initial perception of the quality of the new attributes,seeding strategy can help innovative firm obtain higher profits.In addition,seeding strategy can reduce the substitutability of competing products,thereby benefiting both firms.Third,the scenario is further expanded to the vertical supply chain environment.Exploring the impact of seeding strategy on the utility of consumers’ experiential products in the supply chain environment and the pricing decisions and profits of manufacturers and retailers is explored so as to discussing the impact of online reivews on supply chain pricing decisions when manufacturers and retailers are the implementers of seeding strategy,and the implementation conditions of different seeding strategies.The results show that no matter in a centralized or decentralized supply chain environment,any given seeding strategy is effective under certain conditions.The retailer has free-riding behavior under the manufacturer seeding strategy.In addition,a contract that combines revenue sharing and subsidies can coordinate the supply chain.Finally,our research studies the optimal pricing decisions of each member of the supply chain in different channel modes(retail channel mode,dual-channel mode and O2 O mode)when the manufacturer implements seeding strategy.The conditions and scope of the implementation of seeding strategy under different channel modes are further explored.In addition,the preference selection of each member for the three channel modes is analyzed.The results show that the implementation of seeding strategy can increase the wholesale prices of products under the three channel models,and the retail prices of online and offline products;and at a certain implementation cost,seeding strategy can promote the increase in the profits of all parties in the supply chain and improve operating environment of supply chain.In addition,when manufacturer implements seeding strategy,if the cost of seeding strategy implementation is lower,the retailer will prefer the dual-channel model compared to the O2 O model.The research shows that under the mobile internet environment,when firms sell experiential new products,through effective management of the online reivews,the firms can increase consumers’ favorability of the products and brand loyalty,and improve overall social benefits.In addition,this thesis discusses the changes in the benefits and losses of different stakeholders after being affected by seeding strategy from a theoretical level and multiple perspectives,and provides rich innovations in the field of corporate operation and social business research.