• Corpus ID: 239616207

A Two-stage Pricing Strategy Considering Learning Effects and Word-of-Mouth

  title={A Two-stage Pricing Strategy Considering Learning Effects and Word-of-Mouth},
  author={Yanrong Li and Lai Wei and Wei Jiang},
This paper proposes a flexible two-stage pricing strategy for nondurable (such as electronics) products, whose selling price is marked-down at a flexible time point during the lifecycle. We consider the learning effect of manufacturers, which is reflected by the decrease of average cost with the accumulation of production. Moreover, word-of-mouth (WOM) of existing customers is used to analyze future demand, since many customers make the purchase decision according to WOM. We theoretically prove… 


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