Proceedings of the 2022 International Conference on mathematical statistics and economic analysis (MSEA 2022)

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Retailers' Optimal Advance Selling Pricing and Inventory Decision with Virtual Showrooms

Authors
Cuixiu HU1, *
1School of Economics and Management Beijing JiaoTong University, Beijing, China
*Corresponding author. Email: 20120577@bjtu.edu.cn
Corresponding Author
Cuixiu HU
Available Online 29 December 2022.
DOI
10.2991/978-94-6463-042-8_32How to use a DOI?
Keywords
advance selling; showroom; strategic consumer; product valuation uncertainty
Abstract

With the development of e-commerce, the advance selling strategy with showrooms is widely adopted by many retailers in order to solve the uncertainty of consumer valuation and reduce inventory risk. In order to make the optimal pricing and inventory decision when the retailers share information with consumers in the pre-sale period, this paper studies the advance selling decision with virtual showrooms. The virtual showroom allows consumers get an imperfect signal of their valuation online, which may lead to returns in regular selling period. The pre-sale strategy with virtual showrooms hasn’t been studied. This paper establishes a model and derives the optimal advance selling price and ordering quantity for the regular season. Next, this paper analyzes how different parameters affect retail’s optimal decision in the numerical examples. The results show that the retailer's optimal price varies along with the retailer's return cost, the consumer’s hassle cost and the informatization degree of the virtual showroom.

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 International Conference on mathematical statistics and economic analysis (MSEA 2022)
Series
Advances in Computer Science Research
Publication Date
29 December 2022
ISBN
10.2991/978-94-6463-042-8_32
ISSN
2352-538X
DOI
10.2991/978-94-6463-042-8_32How 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  - Cuixiu HU
PY  - 2022
DA  - 2022/12/29
TI  - Retailers' Optimal Advance Selling Pricing and Inventory Decision with Virtual Showrooms
BT  - Proceedings of the 2022 International Conference on mathematical statistics and economic analysis (MSEA 2022)
PB  - Atlantis Press
SP  - 212
EP  - 216
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-042-8_32
DO  - 10.2991/978-94-6463-042-8_32
ID  - HU2022
ER  -