A behavior-based pricing model in retail systems considering vertical and horizontal competition

Ziari, Matineh; Sajadieh, Mohsen S.

doi:10.1016/j.cie.2020.107054

Cited by 11 publications

(6 citation statements)

References 47 publications

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“…Second, our work contributes to the stream of literature on personalized pricing. Prior studies mainly focus on the following issues: the profitability of personalized pricing (Shaffer and Zhang, 1995), behavior-based pricing (Colombo, 2015; Ziari and Sajadieh, 2021), marketing strategy based on personalized pricing (Anderson et al ., 2015), customer fairness concern (Zhang et al ., 2022). Our research focuses on the profitability of personalized pricing.…”

Section: Literature Reviewmentioning

confidence: 99%

On the benefit of developing customer profile analysis to implement personalized pricing in a supply chain

Gan,

Gao,

Zhou

et al. 2024

MSCRA

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PurposeThe advanced technology enables retailers to develop customer profile analysis (CPA) to implement personalized pricing. However, considering the efficiency of developing CPA, the benefit to different retailers of implementing more precise personalized pricing remains unclear. Thus, this essay aimed to investigate the impact of efficiency on participants’ strategies and profits in the supply chain.Design/methodology/approachA two-stage game model was introduced in the presence of a manufacturer who sets his wholesale price and a retailer that decides her CPA strategy. The equilibrium results were generated by backward induction.FindingsMost retailers are willing to develop the highest CPA to implement perfect personalized pricing, but those inefficient retailers with high production costs would like to determine a middle CPA to implement bounded personalized pricing. The retailers’ profits may decrease with the efficiency of developing CPA when the efficiency is middle. In this case, as the efficiency improves, the manufacturer increases the wholesale price, resulting in lower demand and thus lower profits. Moreover, define a Pareto Improvement (PI) strategy as one that benefits both manufacturers and retailers. Therefore, uniform pricing is a PI when the unit cost is high and the efficiency is low; personalized pricing is a PI when the unit cost is low and the efficiency is low or high; otherwise, there is no PI.Originality/valueThis study is the first that investigates how the retailer develops CPA to implement personalized pricing on a comprehensive spectrum, which can provide practical insights for retailers with different efficiencies.

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Section: Literature Reviewmentioning

confidence: 99%

On the benefit of developing customer profile analysis to implement personalized pricing in a supply chain

Gan,

Gao,

Zhou

et al. 2024

MSCRA

View full text Add to dashboard Cite

show abstract

“…Constraints (15) express capacities for suppliers with minimum required efficiency. Constraints ( 16) and ( 17) calculate customer demand and returned products (Ziari and Sajadieh 2020). Constraints ( 18) and ( 19) enforce binary and non-negativity restrictions on corresponding decision variables.…”

Section: mentioning

confidence: 99%

A joint pricing and network design model for a closed-loop supply chain under disruption (glass industry)

Ziari

Sajadieh

2022

RAIRO-Oper. Res.

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Closed-loop supply chains have attracted more attention by researchers and practitioners due to strong government regulations, environmental issues, social responsibilities and natural resource constraints over past few years. This paper presents a mixed-integer linear programming model to design a closed-loop supply chain network and optimizing pricing policies under random disruption. Reusing the returned products is applied as a resilience strategy to cope with the waste of energy and improving supply efficiency. Moreover, it is necessary to find the optimal prices for both final and returned products. Therefore, the model is formulated based on demand function and it maximizes total supply chain’s profit. Finally, its application is explored through using the real data of an industrial company in glass industry.

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“…They implement uniform pricing for manufacturers and discriminative pricing for retailers and investigate strategies for increasing increases channel members' profits. Accordingly, Ziari and Sajadieh (2021) present a competitive pricing model considering customer behavior and propose a service‐level and price‐dependent demand function for the wholesalers and a price‐ and location‐based model for the retailers in this market. Li and Zhao (2021) explore how competition occurs among SCs in the presence of process improvement.…”

Section: Pricing Paradigms and Related Literaturementioning

confidence: 99%

A review on competitive pricing in supply chain management problems: models, classification, and applications

Ziari

Ghomi-Avili

Pishvaee

et al. 2021

Int Trans Operational Res

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Supply chain management (SCM) deals with various strategic, tactical, and operational level decisions in which pricing is of utmost importance to decision makers. Most of the real‐life supply chain pricing problems consider competition as a crucial factor in order to expand the market share and tackle emerging competitors. Accordingly, competitive pricing in SCM has attracted great attention by practitioners and academicians in the last four decades. Now after 40 years, it seems necessary to systematically review and classify the previous studies and present the most appealing future research directions. This paper provides a comprehensive review of the state‐of‐the‐art published papers in scientific journals. Here, 166 papers published from 1983 to 2021 are reviewed and classified to introduce the major models and specific considerations in this field. After reviewing the selected competitive pricing models, some research insights and potential subjects for extending the literature are presented to illustrate the most appropriate and challenging future research directions.

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A behavior-based pricing model in retail systems considering vertical and horizontal competition

Cited by 11 publications

References 47 publications

On the benefit of developing customer profile analysis to implement personalized pricing in a supply chain

On the benefit of developing customer profile analysis to implement personalized pricing in a supply chain

A joint pricing and network design model for a closed-loop supply chain under disruption (glass industry)

A review on competitive pricing in supply chain management problems: models, classification, and applications

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