Product pricing considering product quality in return case

Xuwang Liu, Yanyang Liu, Wei Qi, Xiwang Guo, Liang Qi, Ying Tang

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


To meet the needs of the Internet of Things, every edge device is equipped with the functions of data collection, analysis, calculation, communication, and intelligence. Based on the consumption pattern of offline experience and online purchase, and considering the impact of product quality differences, product defects, and offline service level on customers' purchasing behavior, this paper uses the model (Multinominal Logit Model) to research customers' choice behavior and online product pricing. This paper takes the pricing of dual-channel retailers in different channels as the background, and how to maximize the retailer's profit as the goal, establishes the loss cost model of customer returns, and analyzes the influence of quality problem returns on the optimal pricing and profit of retailers in different channels. The study found that the offline service level remains at 0.24 and retailers can obtain the best profit; the optimal price decreases with the online product quality and the optimal profit increases. In the omni-channel environment, customers can buy products according to their own utility and preferences freely switch between various channels, retailers in the face of customer return this situation, can start from their own interests, provide appropriate service level, reasonable control product quality, make the optimal pricing, maximize their own profits. This study expands the theory of online product pricing from the perspective of customers behavior, provides a more flexible pricing mechanism for enterprises, and speeds up the development and application of intelligent edge computing systems.

Original languageEnglish (US)
Title of host publication2021 IEEE International Conference on Systems, Man, and Cybernetics, SMC 2021
PublisherInstitute of Electrical and Electronics Engineers Inc.
Number of pages6
ISBN (Electronic)9781665442077
StatePublished - 2021
Event2021 IEEE International Conference on Systems, Man, and Cybernetics, SMC 2021 - Melbourne, Australia
Duration: Oct 17 2021Oct 20 2021

Publication series

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


Conference2021 IEEE International Conference on Systems, Man, and Cybernetics, SMC 2021

All Science Journal Classification (ASJC) codes

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


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