Consider strategic consumers and trade-in product dynamic pricing strategy research

Abstract

This paper analyzes the choice behavior of strategic consumers and the impact of trade- in on product pricing path, compares the equilibrium deviation between different pricing decision- making methods, and discusses the optimal product pricing strategy under different situations. It is found that strategic consumers tend to buy low quality products with lower price if the degree of strategy is higher. The higher the level of quality investment, the stronger the willingness of strategic consumers to buy new products. Compared with centralized decision-making, decentralized decision-making is more conducive to the two enterprises to improve their own profit level. The relevant conclusions of the research can provide forward-looking basis for enterprises in the launch timing of new and old products, pricing decisions and trade-in strategies, which has certain theoretical significance and practical value.