Pricing Model On Considering Conspicuous Consumption

:Conspicuous consumption phenomenon is more and more common with the development of society and economic. At present, empirical studies on conspicuous consumption is relatively rare, while the pricing model abount conspicuous consumption research is less. The consumers is divided into snobs and followers according to existing research results. We get utility functions of consumers, and formulate the relationship between consumer’s demand and product’s price, and model based on conspicuous behaviors. After that the single pricing model, two-stage multi-period pricing model and multi-period pricing model are developed.The main work and major conclusions are as follows:(1) The pricing models considering consumers’ rational expectation has been developed. The relationship between consumer’s demand and product’s price is formulated according utility functions. After that we develop the single pricing model and two-stage multi-period pricing model. And then the optimal pricing strategy and the maximum profits of the manufacturer are deduced. Finally, numerical examples show that the optimal pricing strategy and the maximum profits of the manufacturer are more sensitive to the bandwagon effect coefficient than to the snob effect coefficient, and that the two-stage pricing strategy can bring greater profit to the manufacturer compared to the single pricing strategy.(2) The pricing models considering consumers’demand learning have been developed. For consumers cannot accurately predict the purchase number, assuming that consumers learn the previous the number of consumers who purchased the product, and that they put the purchase number observed as the current expected number of purchase. After that we establish the manufacturer’s mutil-cycle pricing models. For the pricing model considering the complete rational consumers, we export the existence conditions and the formula of the steady state, and that when the steady state exists, the optimal pricing strategy and consumer demand monotonically converges to the steady state. The numerical examples show that when the steady state doesn’t exists, the optimal pricing strategy and consumer demand fluctuates up and down respectively. For the pricing model considering response stochastic optimal equilibrium of consumers, we study some related properties of the two-period model, and explore how the rational degree and bandwagon effect coefficient affect the maximum profits of the multi-period model hrough numerical methods. The numerical results indicate that the maximum profits of manufacturer decreases with the rational degree, and increases with the bandwagon effect coefficient.