Research On Pricing And Promotion Effort Strategies Of An Enterprise Considering Consumers' Fairness Preference

Different pricing and promotion strategies among enterprises have triggered a large number of consumers' fairness preference behaviors.Nowadays,consumers pay more attention to promotion activities and prices among different enterprises,and everyone wants to be treated fairly.In a market environment,consumers will compare their earnings with corporate profits and deny price transactions involving unfair divisions.If the pricing looks greedy and is believed to result in high profits for the company,they may choose not to buy the product.Differences in promotional efforts can also directly lead to a sense of injustice.At the same time,corporate pricing and promotional efforts are closely related to corporate costs and profits,but consumers are often unable to accurately obtain information about corporate costs and profits.Because in many market transactions,enterprise cost information is imcomplete,consumers have no clear understanding about enterprise costs.Consumers 'views on business costs are inaccurate.Their views on costs,profits and fairness are malleable and easily affected.This paper supplements the existing research that only considers prices by studying the best decision-making of the promotion level and price of enterprises when facing consumers with fairness issues.Based on the above background,this paper introduces consumer fairness preference into the strategy of corporate pricing and promotional efforts,and establishes a signal transmission game model between consumers and firms to study consumer fairness preference for optimal pricing of companies and the impact of promotional effort decisions.The optimal solution of enterprise decision and analytical conclusion are obtained.Finally,numberical studies are carried out to supplement the theoretical conclusion,and discuss how the consumers' fairness preferences affects the optimal decision of enterprises(promotion effort level and price)and the corresponding corporate profits when two types of consumers and two types of enterprises account for different proportions.The results are as follows.When consumers clearly know the cost type of an enterprise,their fair preferences will not affect the optimal level of promotion of the enterprise.In this case,for enterprises,the most effective way to eliminate consumers' fairness preferences is to adjust prices rather than change promotional efforts.When consumers are not sure about the cost of an enterprise,the promotion level of the enterprise in this market is not monotonous with the consumer 's fair preference.When consumers are not sure of the cost of enterprises,the promotion level of enterprises in this market is not monotonous with the consumers' fairness preference.In this case,enterprises haveflexibility to transmit the signal of high cost by adjusting the level of enterprise promotion,so as to eliminate consumers' unfair feelings and maintain their own competitive prices.