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Uniform Pricing Strategy vs. Price Differentiation Strategy in the Presence of Cost Saving and Demand Increasing

Uniform Pricing Strategy vs. Price Differentiation Strategy in the Presence of Cost Saving and Demand Increasing
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摘要 Price 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 ciistomer demand and reducing the operations cost. The research shows that the uniform pricing strategy can be bet ter 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 manufac tu rers or brand owners need a tradeoff bet ween 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. Price 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.
出处 《Journal of Systems Science & Complexity》 SCIE EI CSCD 2019年第3期932-946,共15页 系统科学与复杂性学报(英文版)
基金 partially supported by the National Natural Science Foundation of China under Grant Nos.71390331,71461009,71761015,71202114 Science and Technology Project of Jiangxi Provincial Education Department under Grant No.GJJ160436
关键词 Cost saving DEMAND INCREASING DUAL-CHANNEL PRICE differentiation STRATEGY UNIFORM pricing STRATEGY Cost saving demand increasing dual-channel price differentiation strategy uniform pricing strategy
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