Pricing strategy for new products with presales
Summary: An increasing number of firms and retailers use presale strategies to induce customers to purchase before new products enter the market to increase their market share. Presales have gradually become a hot issue in business and academic circles. Based on a skimming pricing strategy and a penetration pricing strategy, this paper uses the different choice behaviors of two types of consumers to investigate the pricing strategy of preselling new products. The results show that if the proportion of fashion consumers is relatively low and their willingness to buy in the spot channel is below the threshold, the retailer should focus on traditional consumers by using a skimming pricing strategy; otherwise, the retailer should switch to a penetration pricing strategy. Moreover, we find that to gain more profits, the retailer should introduce a presale channel using either a penetration pricing or skimming pricing strategy. The introduction of a presale channel may not only reduce inventory risk and cost and enhance the market share and profitability of the enterprise but also help consumers avoid the risk of shortage and enhance their sense of security.
- New product presale strategies considering consumers' loss aversion in the e-commerce supply chain
- Skimming or penetration: optimal pricing of new fashion products in the presence of strategic consumers
- The effects of an undisclosed regular price and a positive leadtime in a presale mechanism
- Optimal pricing strategy for new products considering reference price effect in advance selling
- Optimal pricing strategy for new products
- Advance selling with preorder-dependent customer valuation
- Channel and pricing decisions in a supply chain with advance selling of gift cards
- Contingent preannounced pricing policies with strategic consumers
- Dynamic pricing in the presence of strategic consumers and oligopolistic competition
- Entry of online presale of fresh produce: a competitive analysis
- Improved Fashion Buying with Bayesian Updates
- Information acquisition for capacity planning via pricing and advance selling: when to stop and act?
- Integrating Replenishment Decisions with Advance Demand Information
- Inventory Control with Limited Capacity and Advance Demand Information
- Inventory Management with Advance Demand Information and Flexible Delivery
- Joint pricing and overbooking policy in a full payment presale mechanism of new products
- Optimal decisions for sellers considering valuation bias and strategic consumer reactions
- Optimal dynamic pricing for deteriorating items with reference price effects when inventories stimulate demand
- Optimal markdown pricing: implications of inventory display formats in the presence of strategic customers
- Purchasing, Pricing, and Quick Response in the Presence of Strategic Consumers
- Reducing the Cost of Demand Uncertainty Through Accurate Response to Early Sales
- Replenishment strategies for distribution systems under advance demand information
- Revenue management with strategic customers: last-minute selling and opaque selling
- Strategic capacity rationing to induce early purchases
- Skimming or penetration: optimal pricing of new fashion products in the presence of strategic consumers
- Why and how do branders sell new products on flash sale platforms?
- Entry of online presale of fresh produce: a competitive analysis
- Complementary product pricing and service cooperation strategy in a dual-channel supply chain
- New product presale strategies considering consumers' loss aversion in the e-commerce supply chain
- Return mode selection and pricing strategy for a dual-channel retailer
- The effects of an undisclosed regular price and a positive leadtime in a presale mechanism
- Pricing strategies for innovators in the presence of free-riders
- Pricing policy selection in a platform service supply chain with online reviews
This page was built for publication: Pricing strategy for new products with presales
Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q2298030)
