Timeing And Pricing Of Repeat Purchase Goods Based On Diffusion Theory

The market diffusion mechanisms and laws of new product or technologies are important issues of market research.In a fully competitive market environment,almost all enterprises will put the new products development on its own development strategy in a prominent position,and whether does the new product going on the market can bring the biggest profit to the enterprise has become the most concerned issue.However,because the new product going on the market receives the market influence of the market competition and demand uncertainty,at the same time,prices and demand can affect each other,so when a firm introduces a new product to the unknown market,prices tend to directly affect the degree of product acceptance by customers.In view of this,this paper establishes the proliferation of mathematical model for upgrading new products,and uses the new model to analyze the biggest profit implications of new products relative to competitive products for market and dynamic pricing.The paper is of great research significance as it studies the choice of launching and pricing on new products,as well as provides a foundation to make policies of enterprise market.Because the increasing market competition shortens product life cycle and speed up the upgrading of products,and end of the product life cycle or product update can lead to repeat purchase behavior,product unit value is very low at the same time,repeat purchase rate will largely influence the sales of the products,so taking repeat purchase into product diffusion model is very necessary.Firstly,the paper introduces the research background of the new product diffusion,thus putting forward the research focus,namely how to determine the pricing and launching to the market.It is an overview of the full article.Secondly,the paper synthesizes theories and methods related to innovative product diffusion,the basic form of HJB equation,which is a theoretical foundation for future research.Finally,the paper establishes the pricing model of repeat purchase products.When considering cost learning effect,it gives the optimal prices.The simulation shows that the optimal price is increased with the increasing of innovation coefficient and consumption rate,analyzes the interaction between price and demand,and shows that consumption rate of increase can prolong the lifecycle of the products and reduce the product number,thereby reducing the corporate profits.The paper studies on the entry time and price in the firms' perspective,extending to the two generations of products.It analyzes the relationship of two generations of products between competition and alternation,using the optimal control theory by the HJB equation to solve the problem of best price and entry time of the second generation product.It gives the optimal prices under two different demand functions and the discount rate,market entry costs and other factors influence on entry time of the second generation product.Research shows that improving the coefficient of innovation and consumption rate in the second generation products can improve the second generation product price,inhibition of first generation product price,but the effect on the consumption rate of profit is the opposite,with the increase of consumption rate to reduce the profit of the second generation products,and increase the first generation product profit,this the direction that consumption rate effects on the accumulation of the two generation of products is consistent with the quantity of products,so the profit depends largely on the quantity of product diffusion in this study.This paper discusses the best combination strategies of two different demands(linear demand and index demand)from enterprises:firstly,updated products into the diffusion model are considered,the optimal market entry time of the second generation products are also analyzed,the mutual relationships between the factors affecting entry time are displayed.Secondly,optimal price and entry time are analyzed to prove in the theory,when considering cost learning effect,it gives the optimal prices under two different demand functions,the optimal price of the product is decreased gradually with time.Finally,the sensitivity analysis is performed to see how the typical parameters would affect the price and profit in the model.The study finds that the profit of the products mainly depends on the quantity of product diffusion,which guides enterprises to develop small profits but quick turnover.Simulation analysis further reveals the characteristics of interaction with the system factors affecting the diffusion.This provides a reference model for the development of new products.The paper provides simulation analysis and reference for the scientific and reasonable choice of pricing and timing in the diffusion process of innovative products.