IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i19p10936-d648228.html
   My bibliography  Save this article

Effect of Consumer Strategic Behavior on Online Presale Strategy

Author

Listed:
  • Yurong Pei

    (School of Business Administration, Southwestern University of Finance and Economics, Chengdu 610074, China
    Chengdu Normal University, Chengdu 610074, China)

  • Mengying Xie

    (School of Business Administration, Southwestern University of Finance and Economics, Chengdu 610074, China)

  • Qiuling Yang

    (Hilton School of Hospitality Management, Sichuan Tourism University, Chengdu 610100, China)

  • Yi Liao

    (School of Business Administration, Southwestern University of Finance and Economics, Chengdu 610074, China)

  • Yuping Wu

    (School of Business Administration, Southwestern University of Finance and Economics, Chengdu 610074, China)

Abstract

Given the effectiveness of online presale in enhancing retailers’ sustainability and efficiency, combining that consumers’ strategic behavior have a powerful influence on retailers’ presale implementation, investigating the online presale promotion model based on consumer strategic behavior is of key importance for both Academics and business. This study takes the “deposit + final” payment online promotional presale model as the research goal and establishes three different models for providing the retailers with optimal presale strategies. On the basis of proposed models, several numerical experiments to study the effects of retailers’ presales strategies on consumer returns and deposit ratio is conducted, and finally, based on the model results, the suggestions on whether to participate in presales and how to make the optimal deposit ratio decision for retailers when participating in presales is provided for both sustainability and efficiency purpose.

Suggested Citation

  • Yurong Pei & Mengying Xie & Qiuling Yang & Yi Liao & Yuping Wu, 2021. "Effect of Consumer Strategic Behavior on Online Presale Strategy," Sustainability, MDPI, vol. 13(19), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:10936-:d:648228
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/19/10936/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/19/10936/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Oksana Loginova & X. Henry Wang & Chenhang Zeng, 2017. "Learning in Advance Selling with Heterogeneous Consumers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(6), pages 765-783, September.
    2. Mesak, Hani I. & Zhang, Hongkai & Pullis, Joe M., 2010. "On optimal service capacity allocation policy in an advance selling environment in continuous time," European Journal of Operational Research, Elsevier, vol. 203(2), pages 505-512, June.
    3. Liang Guo, 2009. "Service Cancellation and Competitive Refund Policy," Marketing Science, INFORMS, vol. 28(5), pages 901-917, 09-10.
    4. Yossi Aviv & Amit Pazgal, 2008. "Optimal Pricing of Seasonal Products in the Presence of Forward-Looking Consumers," Manufacturing & Service Operations Management, INFORMS, vol. 10(3), pages 339-359, December.
    5. Kevin McCardle & Kumar Rajaram & Christopher S. Tang, 2004. "Advance Booking Discount Programs Under Retail Competition," Management Science, INFORMS, vol. 50(5), pages 701-708, May.
    6. Chenhang Zeng, 2013. "Optimal Advance Selling Strategy under Price Commitment," Pacific Economic Review, Wiley Blackwell, vol. 18(2), pages 233-258, May.
    7. Jinhong Xie & Eitan Gerstner, 2007. "Service Escape: Profiting from Customer Cancellations," Marketing Science, INFORMS, vol. 26(1), pages 18-30, 01-02.
    8. Wang, Feng & Diabat, Ali & Wu, Lunwen, 2021. "Supply chain coordination with competing suppliers under price-sensitive stochastic demand," International Journal of Production Economics, Elsevier, vol. 234(C).
    9. Christopher S. Tang & Kumar Rajaram & Ayd{i}n Alptekinou{g}lu & Jihong Ou, 2004. "The Benefits of Advance Booking Discount Programs: Model and Analysis," Management Science, INFORMS, vol. 50(4), pages 465-478, April.
    10. Marc Möller & Makoto Watanabe, 2010. "Advance Purchase Discounts Versus Clearance Sales," Economic Journal, Royal Economic Society, vol. 120(547), pages 1125-1148, September.
    11. Chu, Tiankuo & Wei, Xu & Zhou, Yimin, 2021. "The pricing and efficiency of pre-Sale crowdfunding," Finance Research Letters, Elsevier, vol. 40(C).
    12. Nocke, Volker & Peitz, Martin & Rosar, Frank, 2011. "Advance-purchase discounts as a price discrimination device," Journal of Economic Theory, Elsevier, vol. 146(1), pages 141-162, January.
    13. You, Peng-Sheng, 2006. "Ordering and pricing of service products in an advance sales system with price-dependent demand," European Journal of Operational Research, Elsevier, vol. 170(1), pages 57-71, April.
    14. Adam J. Mersereau & Dan Zhang, 2012. "Markdown Pricing with Unknown Fraction of Strategic Customers," Manufacturing & Service Operations Management, INFORMS, vol. 14(3), pages 355-370, July.
    15. Cuihong Li & Fuqiang Zhang, 2013. "Advance Demand Information, Price Discrimination, and Preorder Strategies," Manufacturing & Service Operations Management, INFORMS, vol. 15(1), pages 57-71, September.
    16. Mei, Wanxia & Du, Li & Niu, Baozhuang & Wang, Jincheng & Feng, Jiejian, 2016. "The effects of an undisclosed regular price and a positive leadtime in a presale mechanism," European Journal of Operational Research, Elsevier, vol. 250(3), pages 1013-1025.
    17. Jinhong Xie & Steven M. Shugan, 2001. "Electronic Tickets, Smart Cards, and Online Prepayments: When and How to Advance Sell," Marketing Science, INFORMS, vol. 20(3), pages 219-243, June.
    18. Staffan Ringbom & Oz Shy, 2004. "Advance booking, cancellations, and partial refunds," Economics Bulletin, AccessEcon, vol. 13(1), pages 1-7.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jinxian Quan & Sung-Won Cho, 2021. "Optimal Ordering Policy for Retailers with Bayesian Information Updating in a Presale System," Sustainability, MDPI, vol. 13(22), pages 1-18, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oksana Loginova, 2021. "Advance selling, competition, and brand substitutability," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1765-1781, October.
    2. Junshan Lin & Chenhang Zeng, 2023. "Pre-order strategies with demand uncertainty and consumer heterogeneity," The Japanese Economic Review, Springer, vol. 74(1), pages 83-115, January.
    3. Jinxian Quan & Sung-Won Cho, 2021. "Optimal Ordering Policy for Retailers with Bayesian Information Updating in a Presale System," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    4. Chenhang Zeng, 2013. "Optimal Advance Selling Strategy under Price Commitment," Pacific Economic Review, Wiley Blackwell, vol. 18(2), pages 233-258, May.
    5. Oksana Loginova, 2016. "Pricing Strategies in Advance Selling: Should a Retailer Offer a Pre-order Price Guarantee?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 49(3), pages 465-489, November.
    6. Wen Zhang & Weizhe Yang, 2021. "Optimal pre-order strategy with delay in payments," Annals of Operations Research, Springer, vol. 305(1), pages 347-374, October.
    7. Oksana Loginova, 2013. "Pricing Strategies in Advance Selling: Should a Retailer Offer a Pre-order Price Guarantee?," Working Papers 2016-02, Department of Economics, University of Missouri, revised Feb 2016.
    8. Mei, Wanxia & Du, Li & Niu, Baozhuang & Wang, Jincheng & Feng, Jiejian, 2016. "The effects of an undisclosed regular price and a positive leadtime in a presale mechanism," European Journal of Operational Research, Elsevier, vol. 250(3), pages 1013-1025.
    9. Cuihong Li & Fuqiang Zhang, 2013. "Advance Demand Information, Price Discrimination, and Preorder Strategies," Manufacturing & Service Operations Management, INFORMS, vol. 15(1), pages 57-71, September.
    10. Seo, Kyowon & Go, Sarang & Kim, Byungdo, 2020. "Pricing strategies under markets with time gap between purchase and consumption," Journal of Business Research, Elsevier, vol. 120(C), pages 312-320.
    11. repec:umc:wpaper:1303 is not listed on IDEAS
    12. Jun, Sung Youl & Kim, Kyung Ho & Park, Hye Kyung, 2019. "The effect of the preorder strategy on consumers' product choice: The moderating role of product experience and payment timing," Journal of Business Research, Elsevier, vol. 99(C), pages 80-86.
    13. Dror Hermel & Benny Mantin, 2018. "Selling to strategic consumers: on the benefits of consumers’ valuation uncertainty and abundant inventory," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(3), pages 146-165, June.
    14. Man Yu & Roman Kapuscinski & Hyun-Soo Ahn, 2015. "Advance Selling: Effects of Interdependent Consumer Valuations and Seller’s Capacity," Management Science, INFORMS, vol. 61(9), pages 2100-2117, September.
    15. Chenhang Zeng, 2020. "Advance selling of new products considering retailers’ learning," International Journal of Economic Theory, The International Society for Economic Theory, vol. 16(3), pages 306-328, September.
    16. Marco Sahm, 2020. "Advance-Purchase Financing of Projects with Few Buyers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(4), pages 909-933, December.
    17. Man Yu & Hyun-Soo Ahn & Roman Kapuscinski, 2015. "Rationing Capacity in Advance Selling to Signal Quality," Management Science, INFORMS, vol. 61(3), pages 560-577, March.
    18. Gérard P. P. Cachon & Pnina Feldman, 2017. "Is Advance Selling Desirable with Competition?," Marketing Science, INFORMS, vol. 36(2), pages 214-231, March.
    19. Peng, Weicai & Tian, Zhongjun, 2022. "Information acquisition, selling effort and pre-order strategy," International Journal of Production Economics, Elsevier, vol. 249(C).
    20. Kuthambalayan, Thyagaraj S. & Mehta, Peeyush & Shanker, Kripa, 2015. "Managing product variety with advance selling and capacity restrictions," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 287-296.
    21. Oksana Loginova & X. Henry Wang & Chenhang Zeng, 2017. "Learning in Advance Selling with Heterogeneous Consumers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(6), pages 765-783, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:10936-:d:648228. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.