Behavior-based pricing in service differentiated industries

IF 16.4 1区化学 Q1 CHEMISTRY, MULTIDISCIPLINARY

Accounts of Chemical Research Pub Date : 2020-01-01 DOI:10.3934/jdg.2020027

D. Ma, Hua-ming Song

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Abstract

Firms often upgrade service level to enhance their profitability, which leads to competing firms at service disadvantages using behavior-based pricing (BBP) strategy to fight back. The interaction between service differentiation and BBP affects the profits of both competitors. In order to explore the impact of BBP on the competition of firms with service differentiation, we use game theory method to construct a two-period dynamic pricing model. We explore the optimal BBP strategy by comparing and analyzing firms sub-game equilibrium profits. The main conclusions are as follows: (ⅰ) the degree of service differentiation and the relative service cost interact to influence firms optimal pricing strategy. Specifically, when the degree of service differentiation is low (high) and the relative service cost is small (large), both firms do not adopt (adopt) BBP. When the degree of service differentiation is low (high) but the relative service cost is large (small), competing firms have mixed strategic Nash equilibrium, and both firms have a certain probability to adopt BBP. (ⅱ) BBP can help low-service firms to make up for the profits loss caused by the service disadvantage under certain conditions. However, it can lead to fierce price competition, which will damage the profits of both.

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服务差异化行业的行为定价

企业往往通过提升服务水平来提高盈利能力，这导致处于服务劣势的竞争企业采用基于行为定价(BBP)策略进行反击。服务差异化与BBP之间的相互作用影响着竞争双方的利润。为了探讨BBP对服务差异化企业竞争的影响，本文运用博弈论方法构建了一个两期动态定价模型。通过对企业子博弈均衡利润的比较分析，探讨了最优BBP策略。主要结论如下:(1)服务差异化程度和相对服务成本相互作用影响企业最优定价策略。具体而言，当服务差异化程度低(高)、相对服务成本小(大)时，两家企业都不采用(采用)BBP。当服务差异化程度低(高)而相对服务成本大(小)时，竞争企业存在混合战略纳什均衡，双方企业都有一定的概率采用BBP。(2)在一定条件下，BBP可以帮助低服务企业弥补服务劣势带来的利润损失。然而，这可能导致激烈的价格竞争，这将损害双方的利润。

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

Accounts of Chemical Research 化学-化学综合

CiteScore

31.40

自引率

1.10%

发文量

312

审稿时长

2 months

期刊介绍： Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance. Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.