Proceedings of the 2022 2nd International Conference on Management Science and Software Engineering (ICMSSE 2022)

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Advance Selling in the Presence of Product Diffusion Effect and Strategic Consumers

Authors
Jingyi Zhou1, *
1School of Economics & Management, Nanjing University of Science and Technology, Nanjing, China
*Corresponding author. Email: zhouzjy1209@163.com Email: 120107010878@njust.edu.cn
Corresponding Author
Jingyi Zhou
Available Online 29 December 2022.
DOI
10.2991/978-94-6463-056-5_87How to use a DOI?
Keywords
inventory management; pricing decision; advance selling; the product diffusion effect; interface on marketing and operations management
ABSTRACT

Ordering and pricing are the most critical aspects of an e-commerce retailer's operations. Retailers' pricing decisions affect the demand of potential consumers in the marketplace, while appropriate order quantity decisions can help companies optimize their supply chain and logistics management, thereby improving their profitability. Based on the pre-sale background in the e-commerce industry, this paper considers consumer strategic behaviour and the product diffusion effect. Moreover, the theory related to expected utility and differential equation is used to design and solve a two-stage sales model of retailer expected revenue gives the optimal pre-sale pricing and order quantity considering linear diffusion effect and convex product diffusion effect. This paper guides e-commerce retailers to make pre-sale pricing and ordering strategies and has implications for them.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 2nd International Conference on Management Science and Software Engineering (ICMSSE 2022)
Series
Atlantis Highlights in Computer Sciences
Publication Date
29 December 2022
ISBN
10.2991/978-94-6463-056-5_87
ISSN
2589-4900
DOI
10.2991/978-94-6463-056-5_87How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jingyi Zhou
PY  - 2022
DA  - 2022/12/29
TI  - Advance Selling in the Presence of Product Diffusion Effect and Strategic Consumers
BT  - Proceedings of the 2022 2nd International Conference on Management Science and Software Engineering (ICMSSE 2022)
PB  - Atlantis Press
SP  - 591
EP  - 598
SN  - 2589-4900
UR  - https://doi.org/10.2991/978-94-6463-056-5_87
DO  - 10.2991/978-94-6463-056-5_87
ID  - Zhou2022
ER  -