Price Cultivation Model for the New Product Unsuitable for Moved to be Displayed Along with Its Owner

• Main Authors: WANG, HSIEN-BIN, 王憲斌
• Other Authors: CHEN, MIAO-SHENG
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/81246274098006163461

博士 === 南華大學 === 企業管理學系管理科學碩博士班 === 105 === 　　This study explored price cultivation issues mainly for new products which are not suitable for worn or moved to be displayed along with its owner in front of the public. This sort of new products includes real estate, amusement parks, or major furniture. This study made the issue into mathematical models to be discussed specifically and sought its optimal solution for the firm to optimize its discounted selling profits. To end this goal, the study estimated the sales volume of each time unit by using the number of walk-in potential consumers at a point in time to estimate the diffusion power of the product transaction information and by adopting the distribution density function of ceiling prices which consumers are willing to pay to estimate the purchase ratio among potential consumers, and then, set the appropriate pricing at a point in time to maximize the total discounted profits for manufacturers. The finding indicated that the optimal solution has the following properties. Property I: In two-period pricing model, under the condition of given price cultivation period and of price levels be differently priced, the pricing of the second period was found to be lower than that of the first period. Due to the infinite time period pricing model be divided into many consecutive adjacent two-period pricing model, Property 1 would imply the optimal pricing control of the firm at each point in time should decrease with time. Property 2: The price cultivation diffusion model would be discussed, under considering optimizing discounted profits for the firm, whether price cultivation diffusion strategy should be implemented or not. That is, whether or not the firm should choose the most appropriate price cultivation period T*, T*≠0 and T*≠∞, in order to set higher price level in the period of [0,T*) and lower price level in the period of [T*,∞). This is about whether T* exists or not. As a result, when the cost of the firm's unit of capital in the unit time (the interest rate) r is greater than the adjustment of the ceiling price, s, that the consumer is willing to buy, the stated T* must exist. That is, when r>s, under considering the optimal discounted profit, firms should adopt the price cultivation diffusion strategy. This condition could apply to small and medium-sized enterprises which usually have higher costs of capital and less marketing resources to influence the adjustment of the ceiling price which consumers are willing to buy. On the contrary, if r≤s, the firm should always maintain the original single best price, not implement price cultivation diffusion strategy, in order to optimize their discounted profits. This condition suitable for large-scale enterprises which usually have lower costs of capital and more marketing resources to affect the adjustment of the ceiling price which consumers are willing to buy.