The Reference Effect Newsvendor Model With Strategic And Myopic Customers

In the retail industry,retailers have long used the end-of-season discounts,holiday promotions and other dynamic pricing strategies to stimulate consumers to purchase goods,in order to achieve the purpose of emptying inventory and maximize profits.However,as consumers gradually grasp the patterns of the market and the gradual popularization of the Internet,consumers can more access to the market in the number of goods and prices related information.Some consumers will use the information already available to predict the retailer's promotional price and promotion time and choose to postpone to purchase as discount price at a lower price,which are called strategic customers.Compared to myopic customers who do not consider strategic waiting at all,the behavior of these strategic customers has resulted in retailer merchandise pricing and reduced order volumes,and further reduced profits.In order to achieve the object of increasing revenue and avoiding losses,retailers need to adopt new order and pricing decisions to encourage strategic customers to purchase goods in advance instead of waiting to buy at a lower price.However,in the real situation,retailers make these decisions not entirely rational,but under the influence of subjective factors to make decisions,that is,decision-makers in the psychological reference point,risk appetite,risk aversion and other heart factors under the influence of making decisions.This paper analyzes the actual decision of the retailer in two steps based on the theory of reference point and the theory of strategic customer behavior in foreground theory.(1)First,assume that the retailer is completely rational,establish the newsvendor problem model of retailers in the face of strategic customers when the news couples model.And the REE theory is used to solve the model,and the optimal order quantity and pricing decision of the retailer are obtained.This paper analyzes the influence of customer risk preference coefficient,commodity value discount coefficient and commodity purchase price and discount price on retailer's optimal order quantity,commodity pricing decision and profit,and validates the conclusion by empirical analysis.(2)Based on the complete rational model,we introduce the psychological expectation reference point and the value function to establish the decision model when the lose-averse retailer faces the market of the strategic customer and the myopic customer in consideration of the reference point effect.In the case of the retailer,Facing the decision-making behavior of strategic customers and short-sighted customers in the market,the best order and pricing strategies for retailers who are not fully rational when considering the point effect.Analyze the influence of the retailer on the optimal strategy of the retailer's reference,such as the effective intensity,the risk aversion degree,the commodity purchase price and the discount price,and verify the conclusion.And compares the rational retailers and non-rational retailers' decisions in the face of strategic customer and myopic customers.The results show that under the influence of strategic customer behavior,rational retailers will take to reduce the order and reduce the price of the way to ensure their own income.Compared to fully rational retailers,non-complete rational retailers tend to avoid losses by reducing inventory and raising prices.