Advance selling with freebies and limited production capacity
| Autor: | Chia-Wei Kuo, Kwei-Long Huang, Han-Ju Shih |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Microeconomics
Information Systems and Management Supply chain management Strategy and Management 0502 economics and business 05 social sciences TheoryofComputation_GENERAL 050211 marketing Business Quality level Management Science and Operations Research 050203 business & management Valuation (finance) |
| Zdroj: | Omega. 73:18-28 |
| ISSN: | 0305-0483 |
| DOI: | 10.1016/j.omega.2016.12.002 |
| Popis: | We consider a two-period pricing model in which a seller offers freebies along with the product when making advance sales, and production is constrained by capacity. The seller can offer freebies to increase both market base and customer׳s valuation toward the product in advance. The customers strategically determine whether to purchase the product in advance and gain freebies when their valuation on the product is uncertain, or delay their purchase decision until the regular selling period. We characterize the optimal pricing, quality level of the freebie and production quantity decisions that maximize the expected profits of the seller over the two periods. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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