Contract Design And Efficiency Analysis Of Supply Chain With Disappointment Aversion Strategic Consumers

In the increasingly competitive consumer market,in order to attract consumers to buy and occupy more market share,there are different forms of promotional activities.In the face of the endless stream of business activities,strategic consumers will expect the future price trend of the products based on the collected information and purchase experience,and compare the current purchase and waiting for the purchase to determine the purchase time.Consumers who choose to wait for will face two kinds of outcomes.On the one hand,consumers will eventually buy products at low prices,and consumers will be elation at this time;another result is that the products are sold at normal prices,there are no surplus products,and the waiting consumers fail to get the products,at this time,consumers will be disappointed.Elation and disappointment are different psychological satisfactions of consumers.Consumers' perception of utility is no longer only affected by economic payoffs.Psychological satisfaction also increase(or decrease)consumer perception of utility.Different psychological satisfaction will prompt strategic consumers to make different purchasing decisions.Based on the traditional model of considering strategic consumer behavior,this paper introduces psychological factors that affect consumer perception.Firstly,we study how retailer make decisions on pricing and inventory to maximize profits when they face strategic consumer with different psychological satisfaction.Then analyze the equilibrium between consumer and retailer by establishing a two period sales model.And focus on the impact analysis retailer quantity commitment strategies on pricing,inventory decision and profits in the face of disappointment aversion strategic consumers.Compare the effectiveness of the quantity commitment strategy with nonquantity commitment.Finally,it extends to the study of the whole supply chain,this paper studies the effectiveness of quantity commitment decision in centralized supply chain in the face of disappointment aversion strategic consumers,and takes the optimal profit of the supply chain under the quantity commitment strategy as the benchmark.This paper analyses whether wholesale price contract and markdown money contract can reach the profit benchmark of centralized supply chain and make profits freely distributed among members of supply chain under decentralized supply chain.The results show that consumer strategic behavior will damage retailer profits,while elation speculative strategic consumers will aggravate this negative impact,and disappointment aversion strategic consumer will mitigate the loss of profits.When the cost is high,or the consumer value is small,or the salvage is small,and the level of consumer disappointment aversion is high,the quantity commitment strategy may be ineffective.Wholesale price contract can optimize the performance of decentralized supply chain,but it can not distribute the profits freely.Markdown money contract can improve the performance of supply chain,and make profits freely distributed among the members of the supply chain,enhance the binding force of the contract.