TY - GEN
T1 - Online Product Pricing Research Considering Price Anchoring and Online Reviews
AU - Liu, Xuwang
AU - Zhang, Qiannan
AU - Qi, Wei
AU - Guo, Xiwang
AU - Wang, Jiacun
AU - Tang, Ying
N1 - Publisher Copyright:
© 2023 IEEE.
PY - 2023
Y1 - 2023
N2 - The adjustment effect of the anchoring effect and online reviews on consumer cognition has grown to be a significant element influencing business pricing. This study explores the effects of online reviews and price anchoring on company pricing and profits by building an online product pricing model based on expected utility theory from the perspective of consumer purchasing psychology. The findings show that firms must take consumer anchoring psychology into account when making decisions if they want to increase revenue. Different pricing strategies are used depending on the variables associated with the quality of online reviews. The higher the sensitivity coefficient of reviews, in particular when the quality of the reviews is higher than a specified value, the bigger the profit. In the anchor point, the optimal price is rising. When a company chooses a higher price policy, the optimal price steadily decreases with the degree of anchoring.
AB - The adjustment effect of the anchoring effect and online reviews on consumer cognition has grown to be a significant element influencing business pricing. This study explores the effects of online reviews and price anchoring on company pricing and profits by building an online product pricing model based on expected utility theory from the perspective of consumer purchasing psychology. The findings show that firms must take consumer anchoring psychology into account when making decisions if they want to increase revenue. Different pricing strategies are used depending on the variables associated with the quality of online reviews. The higher the sensitivity coefficient of reviews, in particular when the quality of the reviews is higher than a specified value, the bigger the profit. In the anchor point, the optimal price is rising. When a company chooses a higher price policy, the optimal price steadily decreases with the degree of anchoring.
UR - https://www.scopus.com/pages/publications/85187280902
UR - https://www.scopus.com/pages/publications/85187280902#tab=citedBy
U2 - 10.1109/SMC53992.2023.10393959
DO - 10.1109/SMC53992.2023.10393959
M3 - Conference contribution
AN - SCOPUS:85187280902
T3 - Conference Proceedings - IEEE International Conference on Systems, Man and Cybernetics
SP - 2602
EP - 2607
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 -