Study On Manufacturers' Pricing Model Considering The Strategic Consumer With A Change In Production Cost

A significant price drop may be lead in a short life cycle because of obvious production technology updates and market competition,and consumers tend to decide the right time to buy after investigate the price path of the products,which is described as "strategic" and takes huge losses to manufacturers.In order to eliminate the consumer's strategic waiting to buy,manufacturers tend to give some price guarantee.The unit product cost uncertain reduction can be widely found in the process of production and sales,manufacturers should have a certain degree of flexibility for the choice of pricing mechanism based on cost-driven price theory.In order to solve the contradiction,it's of great practical significance to study the change of cost how will influence the manufacturers' pricing decision when faced with strategic waiting of consumers.Based on the existing pricing research related to consumers' strategic behavior,this paper have built a model between a monopoly manufacturer and strategic consumers to study the two-cycle pricing decisions in the context of determining market demand.And the major contents are summarized as follow:(1)In the market with myopic consumers and strategic consumers,we study the manufacturer' pricing strategy among dynamic pricing,price commitment and price matching in different market structures without considering cost change,which will be the basis of this paper.And we prove that the manufacturers can mitigate consumer's strategic waiting through price commitments or price matching.(2)Taking production learning effect and cost uncertainty into the pricing model with myopic consumers and strategic consumers.We analyze the influence of the cost uncertainty on pricing strategy conpared with the optimal pricing strategy without the uncertainty.And we prove that the dynamic pricing may be superior to the price commitment and pricing matching in order to match the uncertain cost reduction,even if there's consumers' strategic waiting.(3)Expanding our research to the remanufacturing supply chain,we also study the impact of cost change on manufacturer when faced with strategic consumers.And we prove that when considering learning effect,consumers' strategic waiting may be benefit to the manufacturers.