A Two-Stage Pricing Study of Product Line Considering Value-Added Services

Wei Qi, Ziwei Li, Xuwang Liu, Xiwang Guo, Jiacun Wang, Ying Tang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

With the advancement of society and technology, consumers are becoming more personalized and more willing to buy new products. To meet the diverse needs of consumers, the design and development of product lines have become an important strategic issue of enterprises. Based on the consumer choice model, this paper aims at the design and development of product lines and the purchase behavior of consumers. A two-stage pricing model is constructed under the condition of bundled sales of products and services. This paper analyzes the impact that enterprises should consider products with value-added services and consumers' purchasing behavior on product line two-stage pricing. Research shows that the level of product value-added services and the degree of enterprise strategy will have an impact on the price of the product line and the enterprise's profit. When the service level is higher, the enterprise's product line price and profit will increase, and when the enterprise discount higher, the enterprise's total profit and product line price will decrease.

Original languageEnglish (US)
Title of host publication2022 IEEE International Conference on Systems, Man, and Cybernetics, SMC 2022 - Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages2484-2489
Number of pages6
ISBN (Electronic)9781665452588
DOIs
StatePublished - 2022
Event2022 IEEE International Conference on Systems, Man, and Cybernetics, SMC 2022 - Prague, Czech Republic
Duration: Oct 9 2022Oct 12 2022

Publication series

NameConference Proceedings - IEEE International Conference on Systems, Man and Cybernetics
Volume2022-October
ISSN (Print)1062-922X

Conference

Conference2022 IEEE International Conference on Systems, Man, and Cybernetics, SMC 2022
Country/TerritoryCzech Republic
CityPrague
Period10/9/2210/12/22

All Science Journal Classification (ASJC) codes

  • Electrical and Electronic Engineering
  • Control and Systems Engineering
  • Human-Computer Interaction

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