Pricing Strategy In Advance Selling Mode For Electronic Commerce Enterprise

In the intense competition of electronic commerce market, when the electronic commerce enterprise sells products, it often can’t know the market acceptance of products and can’t determine the market demand of products, so the electronic commerce enterprise adopts advance selling mode for the sales of products, which can forecast the demand. With the popularity of advance selling mode, the electronic commerce enterprise realizes advance selling mode can fully arouse the enthusiasm of the customers and enhance the customers’experience, so it can be used as a marketing strategy to stimulate market demand.In this thesis, products sales will be divided into two phases:the pre-sale period and the sales period, and two types of customers are included, including informed customers and uninformed customers. Based on customer utility, options contract theory and the newsboy model, the electronic commerce enterprise’s profit function is built. It uses the backward inference method and maximizes the profit function, then gets the optimal deposit, pre-sale price and sale price. When the electronic commerce enterprise sells products with advance selling mode in a unlimited supply, the pre-sale period is divided into two cases:the deposit refund and no deposit refund. In each case the optimal pricing strategies are obtained in the pre-sale period and the sales period. Finally,-the relationship between the customer evaluation and the electronic commerce enterprise’s profit when it sells products in the pre-sale period and the sales period is discussed and the impact factor of the price difference to utility is also discussed in the same way. When the electronic commerce enterprise sells products with advance selling mode in a limited supply, it is concluded that the most optimal sale price is obtained and the relationship between the optimal sales price and the deposit is solved. At the same time, inventory allocation problem in the pre-sales period is studied. The optimal inventory allocation is obtained. Finally in the numerical experiments, the relationship between the customer evaluation and the total profit which the electronic commerce enterprise earns in the pre-sales period and sales period by selling products is discussed and the proportion of the balance due payment in sales period is also discussed.Through the study it can enrich the researches under the background of electronic commerce. It not only provides solutions for the pricing of products, but also provides strategic support for different types of products. It has theoretical value and practical significance.