Advance selling strategy and pricing decisions with online reviews

IF 3.1 4区管理学 Q2 MANAGEMENT

International Transactions in Operational Research Pub Date : 2024-01-03 DOI:10.1111/itor.13425

Ming-Zhao Tang, Tian-Hui You, Bing-Bing Cao

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Abstract

Motivated by marketing practices in advance selling, this paper studies the optimal pricing decisions and advance selling strategy with online reviews. The firm may charge a full or partial price in advance selling and then determine whether to continue selling products in the spot market. We characterize the equilibrium pricing decisions, selling scheme, and advance selling strategy in the monopoly market. We find that no matter what kind of advance selling strategy is implemented, the firm should choose the two-period selling scheme instead of the one-period one to market the product. Notably, when the two-period selling scheme is chosen, either the skimming pricing or the penetration pricing may be optimal for the firm. Specifically, when the review valence is significantly lower, the skimming pricing is always favored by the firm; otherwise, the penetration pricing is more profitable. Moreover, the disclosure quality and review valence jointly affect the choice of firm's optimal advance selling strategy. In detail, advance selling with a full-price strategy is always dominant if the disclosure quality is high; otherwise, the firm's optimal advance selling strategy is determined by the review valence. Meanwhile, we also analyze several extensions to explore meaningful insights and provide decision-making support for the firm facing a complex marketing environment.

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利用在线评论推进销售策略和定价决策

受预售营销实践的启发，本文研究了在线评论的最优定价决策和预售策略。企业可以在预售中收取全部或部分价格，然后决定是否继续在现货市场上销售产品。我们描述了垄断市场中的均衡定价决策、销售计划和预售策略。我们发现，无论实施哪种预售策略，企业都应选择两期销售方案，而不是一期销售方案来销售产品。值得注意的是，在选择两期销售方案时，撇脂定价或渗透定价都可能是企业的最优选择。具体来说，当评论价值明显较低时，企业总是倾向于撇脂定价；反之，渗透定价则更有利可图。此外，信息披露质量和评论价值会共同影响企业最优预售策略的选择。具体来说，如果信息披露质量高，全价预售策略总是占主导地位；反之，企业的最优预售策略则由评论价值决定。同时，我们还分析了几种扩展方法，以探索有意义的见解，为企业面对复杂的营销环境提供决策支持。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Transactions in Operational Research OPERATIONS RESEARCH & MANAGEMENT SCIENCE-

CiteScore

7.80

自引率

12.90%

发文量

146

审稿时长

>12 weeks

期刊介绍： International Transactions in Operational Research (ITOR) aims to advance the understanding and practice of Operational Research (OR) and Management Science internationally. Its scope includes: International problems, such as those of fisheries management, environmental issues, and global competitiveness International work done by major OR figures Studies of worldwide interest from nations with emerging OR communities National or regional OR work which has the potential for application in other nations Technical developments of international interest Specific organizational examples that can be applied in other countries National and international presentations of transnational interest Broadly relevant professional issues, such as those of ethics and practice Applications relevant to global industries, such as operations management, manufacturing, and logistics.