TY - GEN
T1 - Bundle Pricing of Product Line and Value-Added Services Considering Reference Price Effect
AU - Qi, Wei
AU - Li, Nan
AU - Liu, Xuwang
AU - Guo, Xiwang
AU - Wang, Jiacun
AU - Tang, Ying
N1 - Publisher Copyright:
© 2023 IEEE.
PY - 2023
Y1 - 2023
N2 - Price is an important index of consumers' purchase choice, and the price comparison behavior of consumers in the decision-making process also affects the profit and loss of their own purchase utility to varying degrees. Based on multinomial logit(MNL) model, the reference price is incorporated into product line development and design, and the pricing decision of product line and value-added services bundle is studied. The influence mechanism of reference price effect on optimal product pricing and maximum profit is analyzed, and the deviation of strategic decision-making caused by not considering reference price effect is discussed. The results show that the reference price effect has a positive impact on the lowest price products in the product line, but has a negative impact on the high price products in the product line, the total market share of the firm and the total profit. When the reference price effect is ignored, the pricing of different quality products and services in the product line will be higher or lower, and the total market share and total profit will be higher. The results can provide theoretical support for product line design and pricing decision.
AB - Price is an important index of consumers' purchase choice, and the price comparison behavior of consumers in the decision-making process also affects the profit and loss of their own purchase utility to varying degrees. Based on multinomial logit(MNL) model, the reference price is incorporated into product line development and design, and the pricing decision of product line and value-added services bundle is studied. The influence mechanism of reference price effect on optimal product pricing and maximum profit is analyzed, and the deviation of strategic decision-making caused by not considering reference price effect is discussed. The results show that the reference price effect has a positive impact on the lowest price products in the product line, but has a negative impact on the high price products in the product line, the total market share of the firm and the total profit. When the reference price effect is ignored, the pricing of different quality products and services in the product line will be higher or lower, and the total market share and total profit will be higher. The results can provide theoretical support for product line design and pricing decision.
UR - http://www.scopus.com/inward/record.url?scp=85187245351&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85187245351&partnerID=8YFLogxK
U2 - 10.1109/SMC53992.2023.10394488
DO - 10.1109/SMC53992.2023.10394488
M3 - Conference contribution
AN - SCOPUS:85187245351
T3 - Conference Proceedings - IEEE International Conference on Systems, Man and Cybernetics
SP - 2608
EP - 2613
BT - 2023 IEEE International Conference on Systems, Man, and Cybernetics
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 2023 IEEE International Conference on Systems, Man, and Cybernetics, SMC 2023
Y2 - 1 October 2023 through 4 October 2023
ER -