Dynamic Pricing And Advertising Strategies With Strategic Consumers

With the development of information technology,consumers can obtain product information such as price and quality through various channels during shopping,so as to make more favorable decisions for their own utility.With the market saturation and other reasons,the product will usually adopt a price reduction strategy in the later period of sales.When consumers grasp this price reduction rule,they will make crossperiod purchase decisions to postpone the purchase decision to maximize their own utility.These consumers are called strategic consumers.The emergence of strategic consumers has resulted in the loss of corporate profits.Companies will adopt pricing strategies,advertising,and other methods to reduce the adverse effects of strategic consumption.Increased competition among enterprises will make the situation more complicated.How to respond to strategic consumers and increase profits in various market environments is an important issue for companies.In this context,this paper examines how companies can respond to the impact of strategic consumers through the use of advertising and pricing syndication strategies.Based on the dynamic pricing method adopted by the company,two different situations of monopoly and competition are analyzed.Considering the existence of strategic consumers,the company's optimal price and advertising strategy.This article first uses the literature analysis method to sort out the literature of the relevant research field,and extracts the direction and main research content of this article.Afterwards,a game theory was used to establish the price and advertising game model of enterprise monopoly and competition in the presence of strategic consumers.According to the idea of optimization theory,the analytical solution of the model is obtained.Finally,the method of numerical simulation was used to carry out the parameter sensitivity analysis and comparative analysis of the model.The research in this paper shows that under the constraint of certain parameters,there are equilibrium solutions in the models of monopolistic and competitive firms.Companies can respond to the adverse effects of strategic consumers by placing ads.The role of advertising decreases with the degree of consumer strategy.When there is competition in the enterprise,the difference in the quality of strategic consumers and enterprises will reduce the profits of the two companies,but it will have a greater impact on low-quality companies.The research in this paper can help companies make better management decisions,and formulate different pricing and advertising strategies based on their different market positions.At the same time,the innovative method based on dynamic pricing proposes that companies deal with strategic consumers through advertising strategies.It has theoretical significance for the study of strategic consumer areas and provides a theoretical basis for future research.