Limited Advance Selling Based On Consumer Reference Price Effect

With the development of information technology and the rapid popularization of online shopping,the advance selling has become an effective selling way attracting more and more attention from firms and is known and used by consumers.In recent years,it has become a hot topic studied by scholars at home and abroad.For many firms with limited capacity and no ability to improve in the short term,limited advance selling method can help them more effectively allocate two-phase inventory and thus increase revenue.For consumers,it has become more and more convenient to obtain two-phase price information of pre-sold products,and their purchasing behaviors will be affected by the reference price effect.Therefore,based on the research status and reality,this study discusses the optimal limited advance selling strategy of retailers considering the heterogeneous consumer with reference price effect.A commodity market composed of retailers and consumers is established in the study,in which the monopolistic firm selling a single commodity is on the supply side and the consumer of the product is on the demand side.The retailer will sell the product to the market in both the advance period and the spot period,and may decide whether to carry out limited sales during the advance period.In this paper,the optimal pricing decisions and limiting strategies of retailers in different pricing strategies are studied respectively,and then the advantages and disadvantages of all feasible advance selling strategies are further compared to obtain the optimal advance selling decisions of retailers in the face of different capacity situations and consumer structure.Then,the optimal decision is compared with the optimal decision when there is no reference price effect of consumers,and the influence of reference price effect on retailers'limited advance selling strategy is obtained.It is found that the existence of reference price effect does not affect the advance price and the optimal advance quantity,but it will reduce the spot price.The higher the coefficient is,the smaller the feasible region will be.As the coefficient increases,the overall profit of the retailer decreases gradually.The conclusions of this dissertation supplements and enriches the relevant research results of firms'advance selling decisions.At the same time,the conclusions obtained are of guiding significance for firms with limited capacity and can help them make better advance selling decisions in the face of the heterogeneity consumers withreference price effect.