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Research On Products' Discrimination Pricing Strategy Considering Consumer Brand Preference

Posted on:2020-09-30Degree:MasterType:Thesis
Country:ChinaCandidate:W LiuFull Text:PDF
GTID:2439330599475655Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
The booming development of modern information technology has made enterprises increasingly favor market segmentation and adopt discriminatory pricing strategies to obtain lucrative profits.Combining the status quo of discriminatory pricing strategy,the thesis discusses the influence of consumer fairness preference,network externality and sales channel on corporate discriminatory pricing strategy.Firstly,constructing the basic model and the two models of discriminatory pricing model under the condition of consumer fairness preference,and solves the game equilibrium.Comparing and analyzing the impact of consumer fairness preferences on manufacturers' optimal pricing and profits.The study found that when consumers' fairness preference is small,there are two pure strategy Nash equilibrium(uniform pricing,unified pricing),(discrimination pricing,discrimination pricing)and a mixed strategy Nash equilibrium,and low-end brands are more inclined to discriminate pricing strategies.High-end brands are more willing to choose a unified pricing strategy.When consumers have a fairness preference,manufacturers choose a unified pricing strategy to achieve Nash equilibrium.Under the discriminatory pricing strategy,fairness preferences always increase corporate profits.Secondly,establishing four models:(1)Uniform pricing model for two brands under the conditions of network externality(N,N);(2)Uniform pricing for low-end brands,Discrimination pricing for high-end brands(N,B);(3)Low-end brands Discrimination pricing,high-end brand unified pricing(B,N);(4)two brands of discriminative pricing(B,B)and solve game equilibrium.The study found that under the externality of the network,the optimal pricing strategy combination of the enterprise is related to the size of the network externality coefficient and the degree of brand difference.Compared with the unified pricing strategy,whether it is a low-end brand or a high-end brand,the discriminatory pricing strategy improves the enterprise Profit;Under the unified pricing strategy,when there is network externality,the second stage pricing increases when the network externality exists,the first stage price decreases,and the total profit decreases;under the discriminatory pricing strategy,the impact of enterprise optimal pricing is related to the difference betweenenterprise brand and network externality.The existence of network externality always reduces the profit of low-end enterprises.When the externality of network is small,the profits of high-end enterprises increase,and when the externality of network are large,High-end corporate profits have decreased.Finally,considering in the "manufacturer-retailer-consumer" sales channel,the effect of a retailer adopting a unified pricing strategy or a discriminatory pricing strategy on corporate profits and price.The study found that retailers adopt a discriminative pricing strategy to achieve Nash equilibrium.When the network externality is small or large,manufacturers will choose to sign long-term price contracts with retailers.When the network is externally appropriate,the manufacturer will choose to sign a short-term price contract with the retailer.
Keywords/Search Tags:behavior-based pricing, fairness preference, network externality, price contract
PDF Full Text Request
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