Advance Selling And Return Strategy In The Presence Of Speculators

With the rapid development of Internet information technology,advance selling has gradually become an important marketing model for retailers to sell new products.However,sales in advance will inevitably lead to consumers returning goods when the products do not match consumers' purchase intention.Inside,there is a group of speculators in the market who buy the products for the purpose of reselling products to make profits.Facing more and more intelligent consumers,what kind of return policy should be taken to ensure retailer make maximum profit? How do speculators in the market affect profits of retailer?Our paper put forward two-stage model.Figuring out the optimal price and optimal expected profit of the retailer according to the relationship of supply and demand combines with the consumer's valuation.We obtain the optimal return strategy and the role of speculators by comparing the expected profit in the different market trends.The research finds that the return has no effect on the pricing of two periods,and the existence of speculators reduces the pricing of two periods in a “downward” market;the return has no effect on the pricing of period 2 but raise the pricing of period 1,the existence of speculators reduce the pricing of two periods in an “upward” market.The optimal return strategy is that the seller disallows the return in a “downward” market;the appearance of speculators will enable the seller to reduce the supply of products in advance selling to maintain the same return strategy in an “upward” market.Under certain market conditions,if advance selling has a positive impact on future demand,the presence of speculators will increase retailer profits.