Quick Response,Pricing And Inventory Management With Strategic Consumers

More and more consumers will predict the seller's pricing and product availability to determine their purchasing decisions:to buy it immediately or to wait for the future discount.These consumers are called strategic consumers.Strategic consumers have a negative impact on the seller's profits.In response to the ever-changing market environment,sellers have adopted quick response strategies.Most of the previous studies assume that consumers are myopic consumers,and indicate that the quick response strategy can produce significant economic benefits,but in the presence of strategic consumers,how does the quick response affect the inventory and pricing decisions,and the level of profits,and how does the quick response strategy affect the behavior of the strategic consumers is worth exploring further.To this end,this paper studies joint inventory and pricing decisions when the seller uses the quick response strategy considering strategic consumers with risk preference and decreasing value.We solve the optimal pricing and inventory decision of the seller by setting up the twice-order newsvendor model considering strategic consumers,then compare the decision without quick response strategy and analyze the value of quick response in the presence of strategic consumers.The results show that the optimal pricing and maximum return are the increasing function of risk preference and decreasing value,and the optimal inventory are not related to risk preference and decreasing value.The value of quick response depends on quick response costs.When quick response costs are relatively low,quick response can mitigate the negative impact of strategic consumers' behavior on seller's profits,but when quick response costs are high,the quick response strategy may further reduce the seller's profits.The proportion of high-value consumers in the market has an impact on the optimal decision of the seller and value of quick response,the more high-value consumers,the greater the value of the quick response.