Pricing Strategy for Fashion Retailers Considering Anticipated Regret

DOI

10.2991/978-94-6463-298-9_2How to use a DOI?

Keywords

High price regret; Out of stock regret; Strategic consumption behaviour; Pricing strategy; Mid-term pricing

Abstract

Under the multi-brand and fast-paced marketing, consumers' purchase decision is deeply affected by the regret of high price and shortage of stock, for this reason, many scholars propose to alleviate the impact of high price regret on strategic consumers by reducing the magnitude or possibility of price reduction, or to limit supply to reduce the impact of out of stock regret. However, retailers often cannot consider the feelings of consumers in both sales stages at the same time. In order to understand the impact of these two types of regret on retailer profits, this article constructs consumer utility functions and retailer profit functions for two scenarios: no regret psychological impact and regret psychological impact, and depicts the changes in the retailer's most profitable situation when the two regret psychological coefficients change in different directions through images, then we find that, when the reverse constant amplitude changes, the change in regret psychology with smaller coefficients has a greater impact on retailer profits; When changing in the same direction with equal amplitude, the change in regret psychology with a larger coefficient has a greater impact on retailer profits. Ultimately we provided some reference suggestions for mid-term pricing.

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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TY  - CONF
AU  - Yongfang Mao
PY  - 2023
DA  - 2023/11/30
TI  - Pricing Strategy for Fashion Retailers Considering Anticipated Regret
BT  - Proceedings of the 2023 International Conference on Finance, Trade and Business Management (FTBM 2023)
PB  - Atlantis Press
SP  - 4
EP  - 13
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-298-9_2
DO  - 10.2991/978-94-6463-298-9_2
ID  - Mao2023
ER  -