Author: Hale Catmakas
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We study the pricing problem of a seller offering a single item to buyers purchasing multiple units in two periods. Each buyer aims to maximize her total utility over two periods, and is strategic in two dimensions: she may delay the purchase in anticipation of a price discount (at the expense of a reduced utility), and takes other buyers into account when determining her purchase quantity. The seller sequentially sets the price in each period to maximize his profit. We show the existence and uniqueness of the Nash equilibrium of the game between the buyers and derive the equilibrium of the two-stage sequential game between the seller and the buyers. Analysis reveals that strategic buyer interaction shifts the purchases to the later period, which in turn leads the seller to lower the price. Thus, buyer interaction decreases the seller's profit while almost always benefiting the buyers. The seller's profit decreases further if he ignores the buyer interaction. Through numerical analysis, we quantify the loss to the seller due to buyer interaction and due to ignoring the interaction. As a remedial policy to deter strategic buyer behavior, we study commitment pricing where the retailer announces a price path at the beginning of the selling horizon. The seller prefers commitment pricing over sequential pricing when the buyers are impatient or when the cost of the item in the earlier period is relatively low since the seller can induce early purchases in such cases.
Author: Luis C. Corchón
Publisher: Edward Elgar Publishing
ISBN: 178536328X
Category : Business & Economics
Languages : en
Pages : 567
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Book Description
The first volume of this wide-ranging Handbook contains original contributions by world-class specialists. It provides up-to-date surveys of the main game-theoretic tools commonly used to model industrial organization topics. The Handbook covers numerous subjects in detail including, among others, the tools of lattice programming, supermodular and aggregative games, monopolistic competition, horizontal and vertically differentiated good models, dynamic and Stackelberg games, entry games, evolutionary games with adaptive players, asymmetric information, moral hazard, learning and information sharing models.
Author: Chen Jin
Publisher:
ISBN:
Category :
Languages : en
Pages : 40
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Book Description
Problem definition: We consider a monopolist firm selling products to strategic customers who may purchase more than one unit of the product. A key feature of multi-unit purchases is that customers do not value the additional purchases as highly as the first unit, implying the results of multi-unit purchases cannot simply replicate those of single-unit purchases already revealed in the literature. To uncover the implications of multi-unit demands on customers' strategic purchasing choices and the firm's pricing decisions, we consider a two-period model where each strategic customer demands up to two units of a product. Academic/practical relevance: Although the existing literature has revealed the significant implications of strategic customer behavior on firms' pricing decisions, the majority of it assumes that strategic customers purchase at most one unit of a product, and little is known about situations involving multi-unit purchases, which is often the case for certain types of products such as wardrobe basics, for example, classical white shirts or jeans. Methodology: We formulate the firm's profit optimization problem under two pricing schemes including price commitment and dynamic pricing, and provide closed-form solutions for the firm's optimal prices under both schemes. Results: A thorough analysis of price commitment enables us to investigate the effects of two critical factors - the value of the second unit and the strategic level of customers - on the firm's prices and revenue, consumer surplus and social welfare. We find that the optimal prices in each period are non-monotonic in both factors. While a higher value for the second unit generally increases prices, the firm chooses to lower prices at certain points in order to induce multi-unit purchases. Unlike single-unit selling, the first-period price in the multi-unit setting can increase as customers become more strategic. We also find that the surplus of customers may not increase with either the second-unit value, or their strategic level. All these results are driven principally by the complex market segmentation caused by the convolution of multi-unit purchases and strategic customer behavior. Managerial implications: Our study sheds light on how the multi-unit purchase generates different insights on the firm's profit, consumer surplus and social welfare. Our results provide the firm with guidance on the optimal pricing decisions.
Author: Özalp Özer
Publisher: OUP Oxford
ISBN: 0191634271
Category : Business & Economics
Languages : en
Pages : 976
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Book Description
The Oxford Handbook of Pricing Management is a comprehensive guide to the theory and practice of pricing across industries, environments, and methodologies. The Handbook illustrates the wide variety of pricing approaches that are used in different industries. It also covers the diverse range of methodologies that are needed to support pricing decisions across these different industries. It includes more than 30 chapters written by pricing leaders from industry, consulting, and academia. It explains how pricing is actually performed in a range of industries, from airlines and internet advertising to electric power and health care. The volume covers the fundamental principles of pricing, such as price theory in economics, models of consumer demand, game theory, and behavioural issues in pricing, as well as specific pricing tactics such as customized pricing, nonlinear pricing, dynamic pricing, sales promotions, markdown management, revenue management, and auction pricing. In addition, there are articles on the key issues involved in structuring and managing a pricing organization, setting a global pricing strategy, and pricing in business-to-business settings.
Author: P. Jean-Jacques Herings
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 340
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Book Description
Is an equilibrium reached in a de-centralized economy, and if so, what type of equilibrium? What happens if price formation is subject to rigidities? What are the consequences of missing markets, for example for future commodities? Which markets evolve in case of bounded rationality, incomplete information and externalities? How should markets be regulated? How does monetary policy affect the functioning of markets? of the central questions in economic theory - how do markets operate and do they function at all in allocating scarce commodities and resources?
Author: Tareq Ahram
Publisher: Springer
ISBN: 3030204766
Category : Technology & Engineering
Languages : en
Pages : 429
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Book Description
This book focuses on the human aspects of wearable technologies and game design, which are often neglected. It shows how user-centered practices can optimize the wearable experience, thus improving user acceptance, satisfaction and engagement with novel wearable gadgets. It addresses both research and best practices in the applications of human factors and ergonomics to sensors, wearable technologies and game design innovations, as well as new findings on the integration of wearability principles with regard to: aesthetics, affordance, comfort, contextual awareness, customization, ease of use, ergonomics, information overload, intuitiveness, obtrusiveness, privacy, reliability, responsiveness, satisfaction, subtlety, user-friendliness and wearability. Gathering the outcomes of both the AHFE 2019 Conference on Human Factors and Wearable Technologies and the AHFE 2019 Conference on Human Factors in Game Design and Virtual Environments, held on July 24–28, 2019 in Washington, DC, USA, the book addresses the needs of professionals, researchers, and students whose work involves the human aspects of wearable, smart and/or interactive technologies and game design research.
Author: Cheng Lu Wang
Publisher: Springer Nature
ISBN: 3031149610
Category : Business & Economics
Languages : en
Pages : 1070
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Book Description
Interactive marketing, as one of the fastest growing academic fields in contemporary business world, is the multi-directional value creation and mutual-influence marketing process through active customer connection, engagement, participation and interaction. Contemporary interactive marketing has moved beyond the scope of direct marketing or digital marketing, as the market is becoming a forum for conversations and interactions among connected actors or participants in platform ecosystems. The advancement of mobile technology with interactive content and personalized experience makes interactive marketing the new normal in the business world. This handbook contains the most comprehensive and cutting-edge knowledge in the interactive marketing field. The 41 chapters that are divided into eight sections cover all aspects of contemporary interactive marketing realm, including social media and influencer marketing, big data and machine learning in predictive analytics, mobile marketing and proximity marketing, interactive digital marketing and Omnichannel marketing, AI, VR and AR in business applications. With a focal point on interactive marketing, this handbook takes a multidiscipline perspective, from new technology innovations, social media and platform application, economic and cultural impacts, social and psychological analysis, and management and information system. This book provides a timely and comprehensive textbook companion and/or course project resource for college educators and students used for variety of graduate and undergraduate marketing courses, such as Digital Marketing, Internet Marketing, Social Media Marketing, New Media Communication, Marketing Analytics and Marketing Management, etc. It offers valuable references for academic researchers who are interesting conducting and publishing in interactive marketing research. The state-of-art review and emerging new trends presented in the book are particularly useful for research idea generation and conceptual development. The book also putts forward insightful guidelines and practical tools for business management in the application of new interactive marketing strategies and applications in the real world practices. Chapter 41 “Ethical Considerations in Gamified Interactive Marketing Praxis” is available open access under a Creative Commons Attribution 4.0 International License via link.springer.com.
Author: Linge Xia
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
In the business-to-business (B2B) context, purchase decisions regularly involve multiple individuals. The unobserved interactions among these individuals can complicate the measurement of marketing response, a necessary input for resource allocation decisions. In this dissertation, I present a novel model that (1) captures the intra-group dynamics of decision-making units, (2) assesses the effectiveness of marketing touchpoints, and (3) improves the allocation of marketing resources across potential targets. This work builds on the organizational buying literature and proposes a framework that incorporates marketing touchpoints and unobserved intra-group interactions. Applying our model to data from a B2B communications equipment company, I categorize individual decision-makers based on their roles: Technical, Bridge, and Strategic. I find that Technical individuals exhibit the greatest response to seller-initiated touchpoints, followed by Bridge and then Strategic. Both Technical- and Bridge-initiated touchpoints positively influence purchase probability, but Strategic individuals have no statistically discernible direct response. However, all individuals influence the purchase decision via intra-group communication and interactions. Further, such intra-group dynamics appear to be negative, such that when one role initiates interactions with the seller, others are less likely to engage. Individuals with a Strategic role respond better to high-engagement level marketing efforts, while those serve a Technical role respond better low-engagement level marketing efforts. Overall, I find that managers should focus their marketing efforts on individuals who serve the Technical role but allocate more resources to the Strategic role for potential buyers or firms in the non-tech industry. I find that roles participate and influence the decisions differently across stages through the purchase funnel; the optimal strategy is to target the Strategic role in the awareness stage and the Technical or Bridge role in later stages.
Author: Louis E. Boone
Publisher: South Western Educational Publishing
ISBN: 9780324290103
Category : Business & Economics
Languages : en
Pages : 516
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Book Description
Contemporary Marketing Interactive Text by Boone and Kurtz combines the original textbook with rich multimedia, real-time updates, exercises, self-assessment tests, note-taking tools, and much more. This combination of print and online material provides students with active learning tools and tutorials, and helps instructors shorten preparation time and improve instruction. The Interactive Text offers a complete technology teaching solution that integrates all of the media together in one seamless package - no "assembly" is required. Contemporary Marketing Interactive Text consists of two components: a Print Companion and an Online Companion, seamlessly integrated to provide an easy-to-use teaching and learning experience. The Print Companion is a paperback textbook that includes the core content from the original textbook. All time-sensitive pedagogical features and materials at the end of chapters have been moved from the printed textbook to the Online Companion. The Online Companion provides a dedicated Web site featuring all of the core content from the Print Companion combined with integrated, interactive learning resources, self-assessment tests, note-taking features, and basic course-management tools that enable instructors to create and manage a syllabus, track student self-assessment scores, broadcast notes to students, and send electronic messages to students.
Author: A.F. Alber
Publisher: Springer Science & Business Media
ISBN: 1461528887
Category : Computers
Languages : en
Pages : 441
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Book Description
Focusing on the business aspects of interactive systems, this book pays particular attention to applications involving videotex and multimedia. The author describes the technology of these systems, presents case studies detailing their applications, and offers a methodology for planning and producing such systems. Managers, planners, and academics who wish to apply information technology for operational and strategic ends will find no other book more practical, readable, or comprehensive.
