The effects of an undisclosed regular price and a positive leadtime in a presale mechanism

Mei, Wanxia; Du, Li; Niu, Baozhuang; Wang, Jincheng; Feng, Jiejian

doi:10.1016/j.ejor.2015.10.033

Cited by 13 publications

(11 citation statements)

References 32 publications

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“…Prasad et al [6] found that presale strategy is not always optimal but depends on market factors and consumer preferences such as market potential and uncertainty or valuation, risk aversion, and heterogeneity. Mei et al [2], in their research, assumed that the manufacturer did not publish the on-the-spot price in advance and studied the mechanism of the presale price and the spot-sale price on the supply chain. He et al [1] studied the impact of the entry of online grocery stores on physical stores.…”

Section: Presale and Spot-salementioning

confidence: 99%

“…e presale is usually to pay the deposit first, pay the final payment after the official sale, and then ship the goods. Products are often sold at a discount in the presale period and at full price in the spot period [1,2]. Consumers determine whether to buy or when to buy by observing the price difference between the two periods.…”

Section: Introductionmentioning

confidence: 99%

“…At the beginning of the new product launch, the supply was extremely scarce, and Xiaomi took a weekly limited purchase; On March 22, Xiaomi company made a full presale of Xiaomi 9 mobile phone and set the presale period to 3 weeks (http://tech.ifeng.com/a/20190322/45585259_0.shtml). Xiaomi company adopts the same price strategy of presale price, and spot-sale price ( [2,3] also adopt this pricing strategy in their research), and other scholars also adopt differentiated price strategy in their research: for example, the presale price is higher than the on-the-spot price [4], and the presale price is lower than the on-the-spot price [5,6]. It fully demonstrates that, in the context of short supply, when the product supply capacity reaches a certain level, adopting the form of "presale and spot-sale" is an effective sales method.…”

Section: Introductionmentioning

confidence: 99%

“…We classify the consumers according to whether they are informed or not and consider their preferences in our paper. (2) We build four basic models and a coordination model. In the above models, we study and compare the decisions of the retailer and the thirdparty platform, taking into account the possible strategies adopted by members of the supply chain.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Coordination Strategy of the Supply Chain with Consumer Preferences under the “Presale and Spot-Sale” Mode

Cao

Wu²,

Chen

et al. 2020

Mathematical Problems in Engineering

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In recent years, the market economy has been booming, and the demand of consumers has begun to become diversified. Consumers’ preferences for products, the sensitivity of product prices, and other factors can often affect the market demand and also make enterprises realize the importance of consumer preferences. The decision-making model of the supply chain with consumer preference composed of a retailer and a third-party presale platform is established, and we analyze the implementation of a single presale model, a single spot-sale model, and decision-making models under the “presale and sale” mode. The equilibrium strategy of centralized decision and decentralized decision under the mode of “presale and sale” is compared, and the influence of the proportion of informed consumers and the exogenous variables of cross-period discount on supply chain decision is further analyzed. The coordination strategy of the decentralized decision supply chain under the mode of “presale and sale” is put forward, and the coordinated operation among supply chain members is realized. The results show that compared with other sales models, the “presale and spot-sale” model is more beneficial to the profit of the supply chain.

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Section: Presale and Spot-salementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Coordination Strategy of the Supply Chain with Consumer Preferences under the “Presale and Spot-Sale” Mode

Cao

Wu²,

Chen

et al. 2020

Mathematical Problems in Engineering

View full text Add to dashboard Cite

show abstract

“…Presale means that the customer can purchase the item before it is released to the public, while pre-order enables customers to reserve items before they are released to the public. Presale includes a regular price and a presale price discounted from a regular price and offers a different price to the customer based on the sales period [2]. Pre-order programs are the same as advance booking discount programs (ABDP) in that the customer does not know the regular price.…”

Section: Introductionmentioning

confidence: 99%

Optimal Ordering Policy for Retailers with Bayesian Information Updating in a Presale System

Quan¹,

Cho²

2021

Sustainability

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In this study, we investigate inventory allocation and pricing strategies for retailers by incorporating demand information into the issue of inventory allocation during the presale period. In a presale system, retailers offer presale goods at a price lower than the retail price. By offering products at a discount, retailers may attract additional demand. In addition, this system enables retailers to reduce the uncertainty of market demand and establish a strategy for inventory allocation based on the results of presales. A Bayesian approach was employed to analyze and update demand information, and inventory allocation was formulated as a newsvendor problem to determine the optimal policy that maximizes retailer profit. A numerical analysis was conducted to validate the effectiveness of the proposed strategy. Results suggest that the proposed strategies can support retailers by more accurately predicting demand and achieving higher profits with less inventory. Furthermore, retailers can experience greater benefits from risk-averse customers than from risk-neutral customers.

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The two‐stage presale pricing for online products considering anchoring effect and payment pain reduction

Liu,

Zhang,

Wang

2024

Manage Decis Econ

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Online product pricing is an important research field in the platform economy, and a two‐stage mixed presale is a mainstream mode of online sales. In the process of online consumption, the payment method and presale mode have an important impact on consumer behaviour and product pricing. Based on the two‐stage mixed presale mode, this study considers the impact of anchoring and the payment pain reduction effect on consumer behaviour, establishes the corresponding product pricing model and obtains the optimal presale price, sales and profit. It sheds light on the influence mechanism of anchoring and the payment pain reduction effect on consumer behaviour and online product pricing. Theoretical and numerical analyses reveal that the payment pain reduction effect can help to raise the product price, stimulate market vitality and bring higher profits for online retailers, and the anchoring effect and consumers' loss aversion psychology can enhance the profits and sales of online retailers, but they will discourage setting high prices for products. The research results will further enrich the relevant research on customer behaviour and product pricing in the platform economy and will provide decision bases for platform enterprises and online retailers to participate in presale activities and formulate product pricing strategies.

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The effects of an undisclosed regular price and a positive leadtime in a presale mechanism

Cited by 13 publications

References 32 publications

Coordination Strategy of the Supply Chain with Consumer Preferences under the “Presale and Spot-Sale” Mode

Coordination Strategy of the Supply Chain with Consumer Preferences under the “Presale and Spot-Sale” Mode

Optimal Ordering Policy for Retailers with Bayesian Information Updating in a Presale System

The two‐stage presale pricing for online products considering anchoring effect and payment pain reduction

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