Optimal pricing and inventory policies with reference price effect and loss-Averse customers

Wang, Qiang; Zhao, Nenggui; Wu, Jie; Zhu, Qingyuan

doi:10.1016/j.omega.2019.102174

Cited by 47 publications

(20 citation statements)

References 37 publications

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“…On the other hand, this research also proves that Perceived Price can also influence the Brand Image that is relevant to the results of research from Burguet Sákovics (2019); Junyi et al 2018; Verma et al (2019) and Wang et al (2019). This finding is in line with the view that the Perceived Price creates a certain impression on the visitor's mind.…”

Section: Results and Discussion Measurement Model Evaluationssupporting

confidence: 89%

“…In the context of this Perceived Price, this study also found that the Perceived Price can also influence the determination of purchasing decisions made by consumers. This finding is relevant to the results of the Burguet Sákovics (2019); Junyi et al (2018); Verma et al (2019) and Wang et al (2019) study. The logic of the results of research that proves that there is an effect of Perceived Price on Purchase Decisions lies in the preferences of visitors to consume the services offered.…”

Section: Results and Discussion Measurement Model Evaluationssupporting

confidence: 60%

“…In turn, companies may have difficulty meeting operating costs, so the company must achieve the right sales strategy, including promotion, price, and analysis of consumer attitudes (Udomkit, 2015). Alternative reasons that affect the purchase decision is the perceived price (Wang et al, 2019;Junyi et al, 2018). Perceived price assesses the cost in terms of the expected benefits from supply consumption (Burguet & Sákovics, 2019;Verma et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…In most cases, customers have the opportunity to choose from different offers, so the price will be one of the comparative indicators on which their purchasing decisions are based (Wang et al, 2019). Price had been consistently stated as a significant influencing factor in purchasing decisions (Burguet & Sákovics, 2019;Wang et al, 2019). If prices are low, the demand for products increases.…”

Section: Introductionmentioning

confidence: 99%

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Brand image among the purchase decision determinants

Fianto¹

2020

Indonesian Journal of Communications Studies

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The purpose of this research was to measure the effect of word of mouth, perceived price, and service quality toward brand image and purchase decision. This research also aimed to measure the mediating effect of Brand Image toward the relationship between word of mouth, perceive price, and service quality with the purchase decision. This study used a survey technique that utilised questionnaires as research instruments for 200 respondents who have visited Surabaya hotels as well as Partial Least Square (PLS) data analysis techniques. The findings in this research proved that Word of Mouth, Perceived Price, and Service Quality have a significant positive effect on Brand Image and Purchase Decision. This research also revealed that brand image also has an intervening effect in the relationship of Word of Mouth, Perceived Price, and Service Quality with Purchase Decision.

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Section: Results and Discussion Measurement Model Evaluationssupporting

confidence: 89%

Section: Results and Discussion Measurement Model Evaluationssupporting

confidence: 60%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Brand image among the purchase decision determinants

Fianto¹

2020

Indonesian Journal of Communications Studies

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“…Wang et al. (2021) studied a joint dynamic‐pricing and ordering problem in which the customers in the market are assumed as loss‐averse and their purchasing valuations are affected by reference price, a reference price dependent base stock list price policy is proved to be optimal. Wang et al.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal pricing and ordering decisions with reference effect and quick replenishment policy

Zhao

Wang

2021

Int Trans Operational Res

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This paper considers a revenue management problem in which a retailer determines joint pricing and ordering decisions for a single product over a two‐period selling horizon. The goal is to investigate the single and combined influences of reference effect (RE) and quick replenishment (QR) policy on the customers' purchasing behaviors, the retailer's optimal decisions, and the total profit of two periods. We first propose a discrete‐time joint pricing and ordering model with RE and QR policy in the presence of strategic customers. Then we extend to the other two models, in which the retailer does not implement the QR policy and the retailer ignores the customers' RE, to, respectively, explore the values of RE and QR policy to the retailer. Several significant results and managerial insights are derived through theoretical analysis and numerical experiments. Implementing the QR policy could help the retailer cut nearly half of the initial order quantity and improve the profit significantly, especially when the strength of RE is large and the storage cost is high. With the QR policy, if the retailer ignores the RE that factually exists in the customers' minds, she would set lower prices, place fewer initial order quantity, and lose much profit, especially when she sells luxury products or the customers' purchasing behaviors are strongly affected by RE.

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E‐retailer's dynamic inventory and pricing policy with price‐protection services

2022

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This paper investigates a coordinated inventory and pricing problem with the e-retailer's price-protection service over multiple periods. By solving a stochastic dynamic programming in the two-dimensional state space, the optimal policy is fully characterized. Specifically, the inventory policy is a previous price-dependent base-stock policy. The pricing policy: as the previous price increases, the optimal current price stays unchanged first, then increases, and finally decreases. Numerical results indicate that with the impact of the price-protection service increasing, the base-stock level and current price rise under some conditions. Moreover, the price-protection service benefits the e-retailer when its impact is large enough.

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Optimal pricing and inventory policies with reference price effect and loss-Averse customers

Cited by 47 publications

References 37 publications

Brand image among the purchase decision determinants

Brand image among the purchase decision determinants

Optimal pricing and ordering decisions with reference effect and quick replenishment policy

E‐retailer's dynamic inventory and pricing policy with price‐protection services

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