in the presence of strategic customers

 

 

JIN Xin, WANG Fei fan, WANG Zheng xiao

 

(College of Mechanical Engineering, Zhejiang University, Hangzhou 310027, China)

 

 

Abstract: Game model is established with mutual relation between enterprise decision and customer behavior included. According to product inventory and pricing decision where demands are uncertain, customer behavior under different price discount was analyzed. Analytical expressions of the optimal inventory, optimal product price, and customer′s choice to different discount were obtained. The properties of equilibrium solution of the game model are further analyzed by two case studies. The result of the study suggests that the game model is beneficial to enterprise with high product price and price discount. This model helps enterprise better deal with customers′ rational selection.

 

Key words: strategic customers; discount distribution; inventory strategy; pricing strategy; Nash equilibrium