Research On Pricing And Inventory Of Supply Chain Based On Consumer Risk Preference

With the rapid development of new product research and development technology and the continuous improvement of consumers own quality,consumers have varying degrees of risk preference in the face of new product uncertainty prediction.The stronger the consumer’s psychological endurance is,the more positive the consumer is.On the contrary,the weaker the consumer’s psychological endurance is,the more the consumers are risk averse.There is also a risk neutral consumer,also known as rational consumers.The differentiation and individuation of consumers preferences make it difficult for the traditional convergent market environment to meet the normal needs of consumers.It can be seen that consumers’ risk preferences play an important role in the decision-making of manufacturers.Therefore,the study of Supply Chain Pricing and inventory based on consumer risk preference is of great significance to businesses.This paper considers consumer strategic behavior,consumer valuation uncertainty,consumer dependence on price,and supply chain pricing and inventory research based on consumer risk preference in the presence of alternatives in the market.The research mainly includes the following three parts:Firstly,based on the newsboy model,under the decentralized decision-making and centralized decision-making modes,the effects of strategic consumer behavior and consumer risk preference on supply chain pricing,inventory and profit under the uncertainty of consumer valuation are considered,and the effects on strategic consumers and mixed consumption are also considered.Based on the utility function of consumers,the optimal inventory and pricing strategy of Supply Chain Considering consumers risk preference is obtained by solving the dynamic programming model.Secondly,the influence of consumer risk preference on supply chain inventory,pricing and profit is considered when there are substitutes in the market.This paper establishes a dynamic pricing model for short-sighted consumers and strategic consumers at the same time,and obtains the order of different products purchased by consumers at different stages and the optimal pricing and inventory strategy.Third,the utility function of consumers’ reference price is constructed.Based on this utility function,a dynamic pricing model is established for mixed consumers,and the optimal inventory and pricing strategy of supply chain considering consumer risk preference is obtained.The conclusions are as follows:First,the two-stage pricing under centralized decision-making is lower,while the pricing of commodities is lower,the demand of consumers will increase,while the number of orders during the full price period will increase,which will increase market share and enhance the market competitiveness of manufacturers.The higher the consumer risk preference coefficient is,the lower the optimal price of the manufacturer in the first two stages is.Secondly,the optimal price formula of two stages can be obtained by calculating.In this case,the profit of the manufacturer is the largest.The influence of relative quality parameters,product valuation change rate and consumer risk preference on two-stage dynamic pricing and inventory is analyzed numerically.Thirdly,the optimal price formula of the manufacturer is obtained when the consumer will refer to the historical price,and the influence of relative quality parameters,product valuation change rate and consumer risk preference on two-stage dynamic pricing and inventory is analyzed.