Research On Pricing Strategy Of Perishable High-tech Products Based On Consumer Utility

Pricing is a very important issue for all the enterprises, which determines directly whether the sale activities of the enterprise would success as well as how much benefits the corporation could make. In this increasingly competitive market, the life cycle of perishable high-tech products become shorter and shorter, meanwhile product upgrades become faster and faster. Thus, the enterprise would sale several generations of products in different prices at a same time.Therefore, the pricing strategy is an important task of the management. In the past, the price of the product mainly depends on the cost. But with the continuous development of the economy, the buying behavior of the consumer is changing constantly. Whether the consumer buy a product often depends on what and how many consumers could get from the products. In short, only when the consumers’reservation price of the products is greater than the actual selling price of products, will consumers choose to buy the product.Established on the basis of the existing research results, this paper introduces consumer effectiveness in the pricing strategy of Trade-in innovatively. This paper focuses on the Trade-in pricing strategies of the perishable high-tech products and the secondhand market pricing strategies of the perishable high-tech products under the Trade-in activities. The specific studies are as follows:On the basis of the summarized product recycling theory, product pricing theory and consumer utility theory, this paper highlights how the previous scholars developed multi-generation product pricing model, how they quantify the effectiveness of consumer and the impact to consumer buying behavior.With the manufacturer having the responsibility of the activities of Trade-in directly, this paper establishes a Trade-in pricing model of the perishable high-tech products and a Trade-in pricing model of the perishable high-tech products considering the secondhand market. It analyzes the manufacturer’s optimal pricing strategy under the different products treatments, and verifies the validity of the model through the model analysis and numerical simulation and analyzes the impact of the reused treatments to the benefits of manufacturers. At the same time, this paper introduces the consumer utility to the Trade-in pricing strategy, and established the product demand function based on the consumer utility which subject to exponential distribution and linked the consumer utility with consumer purchase probability. Then it studies the impact of the reservation price of consumer on the buying behavior of consumers and manufacturers yield through example analysis and numerical simulation.