Study On Pricing Strategy Of Heterogeneous Products Based On Discrete Choice Model

Along with the continuous deepening of reform and opening up particularly after joining in the WTO, China has a rapid expansion of the domestic market, it promotes the rapid development of glass-lined industry and attracts foreign advanced technology. The total amount of manufacture and sales of Chinese glass lined equipment exceed the half of the world’s total. Finally, and gradually forms three aspects, The coexistence of large, medial and small production scale; the coexistence of high, medial and low-end of products quality; the coexistence of high medial and low-end of market, The product pricing strategy of DT company thinks highly of cost controlling and ignores determining the cost advantage products and market segments; pays attention to the target profit, and ignores grabbing the interests of users; pays attention to the quality not the utility values; the relationship maintenance of customers and despises the market competition factors. From the aspect to solve the objective problems put forward above and combining with the actual situation of DT company, this paper uses the theory and research results of previous studies of pricing model, and establishes a scientific and practical pricing model.In the point of view of economics, this article uses the theory of marketing and economics pricing theory and utility theory, studies the rule of product pricing in different market space. This article from the glass-lined product heterogeneity, the heterogeneity of demand, competitive heterogeneity angle combining with the problems existing in the process of product pricing of DT company, analyzes the main influence to determine the product pricing strategy of DT company, and finds out the discrete choice model suitable to glass lined products pricing strategy from a number of models. This paper takes a research on the glass lined equipment pricing strategy analysis strategy from two aspects of considering the productivity factors or not, and on the hypothesis of the enterprise profit maximization as the goal.Based on the heterogeneous product pricing model, from the research and analysis of this paper, I have drawn three conclusions. The first is that the optimal biddings in different competitive environment and conditions are different and glass lined equipment pricing has the dynamic characteristic. The second is that assuming the profit maximization as the goal, using this model can get the optimal pricing only. The last one is that each of the production enterprise has a relative or absolute advantage products in terms of quality and cost.