Optimal Pricing Strategy Under Consumer Brand Switching

In recent years,with the rapid development of internet technology and a high degree of transparency in information,there are more freedom of choice for consumerse.In addition,the switching cost for the consumers to change a brand has declined dramatically.Then,the enterprises have to choose whether they will make pricing strategies on the basis of consumer brand switching behavior.Therefore,this paper does research on the pricing methods of dual monopoly enterprises which are vertically differentiated from the following three aspects.First of all,this paper analyzes the impact of consumer brand switching behavior on the choice of pricing strategies of the enterprises.It establishes four kinds of pricing model by using the game theory,gets the optimal profits in the four models by using successive derivation and backward induction and obtains the equilibrium pricing strategy,the product prices and enterprise profits through streak plate method.It also analysis that the effect of cost differences under quality adjustment on the pure strategy equilibrium when the enterprises decide to make pricing strategies based on the consumer brand switching behavior at the same time but develop pricing decision successively,and the changes of two enterprises' prices under the optimal then pure strategy equilibrium in the game theory will depend on cost pricing strategy.Secondly,it analyzes the impact of the cost information asymmetry on the choice of pricing strategies of the enterprises under the background of consumer brand conversion.It establishes four kinds of pricing model with the game theory,gains the maximum profits of the models and the optimal cost misrepresentation factor,and obtains the equilibrium pricing strategy,the product prices and enterprise profits through streak plate method.It also analysis that whether a company with high product quality will use its cost information advantage to report its true cost information when the enterprises decide to make pricing strategies based on the consumer brand switching behavior at the same time but develop pricing decision successively,and the changes of two enterprises' prices under the optimal then pure strategy equilibrium in the game theory will depend on cost pricing strategy.Finally,it still analyzes the impact of the advertising intensity on the choice of pricing strategies of the enterprises under the background of consumer brand conversion.It also analysis that how the relationship between the strengths of the two companies affects the purely strategic equilibrium of the game when the enterprises decide to make pricing strategies based on the consumer brand switching behavior at the same time but develop pricing decision successively,and the changes of two enterprises' prices under the optimal then pure strategy equilibrium in the game theory will depend on cost pricing strategy.