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Uniform Pricing Strategy vs. Price Differentiation Strategy in the Presence of Cost Saving and Demand Increasing
Cai, Qiang1,2; Luo, Chunlin1,3; Tian, Xin1,2; Wang, Shouyang1,4
2019-06-01
Source PublicationJOURNAL OF SYSTEMS SCIENCE & COMPLEXITY
ISSN1009-6124
Volume32Issue:3Pages:932-946
AbstractPrice differentiation or discrimination strategy has been regarded as the best choice for firms with online and offline channels, however, recent years often witnessed the practices of the uniform pricing strategy. This paper aims to address the question whether the uniform pricing strategy may be better for the manufacturer, when the uniform pricing strategy has a positive impact on increasing the customer demand and reducing the operations cost. The research shows that the uniform pricing strategy can be better than the price differentiation strategy when the cost saving and demand increasing are large enough or the consumers' acceptance of online channel lies in a certain interval. Moreover, the manufacturers or brand owners need a tradeoff between the benefit from online channel and the negative impact from the offline channel when they implement the price differentiation strategy. Finally, the authors obtain some managerial insights and implications based on the numerical analyses, which are in line with the phenomena in practice.
KeywordCost saving demand increasing dual-channel price differentiation strategy uniform pricing strategy
DOI10.1007/s11424-019-7082-y
Language英语
Funding ProjectNational Natural Science Foundation of China[71390331] ; National Natural Science Foundation of China[71461009] ; National Natural Science Foundation of China[71761015] ; National Natural Science Foundation of China[71202114] ; Science and Technology Project of Jiangxi Provincial Education Department[GJJ160436]
WOS Research AreaMathematics
WOS SubjectMathematics, Interdisciplinary Applications
WOS IDWOS:000465500600013
PublisherSPRINGER HEIDELBERG
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Document Type期刊论文
Identifierhttp://ir.amss.ac.cn/handle/2S8OKBNM/34609
Collection系统科学研究所
Corresponding AuthorTian, Xin
Affiliation1.Univ Chinese Acad Sci, Sch Econ & Management, Beijing 100190, Peoples R China
2.Chinese Acad Sci, Key Lab Big Data Min & Knowledge Management, Beijing 100190, Peoples R China
3.Jiangxi Univ Finance & Econ, Sch Informat Technol, Nanchang 330013, Jiangxi, Peoples R China
4.Chinese Acad Sci, Acad Math & Syst Sci, Beijing 100190, Peoples R China
Recommended Citation
GB/T 7714
Cai, Qiang,Luo, Chunlin,Tian, Xin,et al. Uniform Pricing Strategy vs. Price Differentiation Strategy in the Presence of Cost Saving and Demand Increasing[J]. JOURNAL OF SYSTEMS SCIENCE & COMPLEXITY,2019,32(3):932-946.
APA Cai, Qiang,Luo, Chunlin,Tian, Xin,&Wang, Shouyang.(2019).Uniform Pricing Strategy vs. Price Differentiation Strategy in the Presence of Cost Saving and Demand Increasing.JOURNAL OF SYSTEMS SCIENCE & COMPLEXITY,32(3),932-946.
MLA Cai, Qiang,et al."Uniform Pricing Strategy vs. Price Differentiation Strategy in the Presence of Cost Saving and Demand Increasing".JOURNAL OF SYSTEMS SCIENCE & COMPLEXITY 32.3(2019):932-946.
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