A Research On The Dynamistic Price Strategy Of Perishable High-tech Products In Their Declining Periods Of Life Cycle

Nowadays, new technology is emerging so much and so fast that perishable high-tech products enjoy much shorter periods of life cycle which makes enterprises profit much less from these products in their declining period of life cycle. We thus discuss a new dynamistic price strategy believed to be a nice way to match the supply and demand of such products. If executed properly, enterprises are sure to benefit from it.This article studies the upgrading of perishable high-tech products. Requirements of the application of dynamistic price are considered. It shows that we can use this new strategy to sell or even control the perishable high-tech products in their updating periods. It then analyzes how the dynamistic price is formed considering the realities of products upgrading. Some conclusions are made about the design of dynamistic price in different situations of products updating. Furthermore, it testifies from another way that the marginal value and product value of old products are gradually declining.In addition, it discusses factors that should be considered when designing the dynamistic retail price and how it comes out in actual situations. It also notifies how to advance the design in different situations with or without inventory transforming given a fixed amount of inventory and period of sales. It discloses that the best ordering quantity of a single retail could affect the profits greatly. In the end, two adaptable dynamistic retail price models are raised companied with a case to testify the possibility of improving the profits using this theory.