The Introduction And Pricing Strategy Of Differentiated Information Goods With The Network Effect

Quality differentiation is a pricing and selling method widely adopted for information goods.High and low quality can meet different needs of consumers and expand the market share.Under the influence of network effect,this paper studies the pricing strategy of goods with a single quality and different quality in different introduced orders;and expands to the leading-following market,studies the competitive pricing strategies of quality different goods under the network compatibility,analyzes the influence of network effect on prices,demands and profits under different strategies.The provider only offer information good with a single quality.The price reduction can still attract some consumers,to extend the sales period of the product and increase the profit.Before and after the price reduction,the goods can still meet the same market demands.As the effect of the network increases,the price of goods increases when they are first sold,but the price of the second-stage is reduced.At the same time,the demands increase when before and after the price reduction.The total profits also increase.The provider offer different quality information goods in different introduced orders.If goods of higher quality are given preferential,the provider can set a higher price in the first stage.In the second stage,goods of higher quality need to be reduced to a lower price for attracting the remaining consumers and increasing market demand.If the network effect increased,the price of the first stage and total profit with two strategies will increase.Under the influence of network compatibility effect,the leading provider can set higher price with the “first moving advantage”,and the following provider choose a reasonable price to obtain greater market demand.The providers always make itself more beneficial with increasing the power of network effect.The leading provider will strive to expand the scale of the company,while suppressing the forces of the competitor as much as possible.The strategy of the following provider is achieving product compatibility.When the network effect between the two sides is large different,the leading provider is inclined to be incompatible with scale advantage;When the network effect between the two sides is relatively close,the leading provider is inclined to be compatible with unobvious advantage.