Pricing of excess inventory on Groupon
| Autor: | Srini Krishnamoorthy, John G. Wilson, Kyle D. S. Maclean |
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| Rok vydání: | 2017 |
| Předmět: | |
| Zdroj: | International Journal of Revenue Management. 10:52 |
| ISSN: | 1741-8186 1474-7332 |
| DOI: | 10.1504/ijrm.2017.084152 |
| Popis: | We consider the problem faced by a business that is considering using the Groupon platform to sell excess inventory. We discuss how demand functions can be derived using management knowledge. Then, using a single period model where excess inventory is exogenous, we show that the decision to use Groupon and the price to set on that channel depend on two parameters: the relative price sensitivity of Groupon customers as compared to the retailer's regular customers and the relative size of the Groupon market as compared to the regular market. Under a two-period model, when initial inventory is a decision, we show optimal inventory quantities. Our two-period model suggests that managers may plan on using Groupon and order inventory accordingly. We discuss the implications on third party channels as well as retail managers. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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