Pricing strategy of innovative product in supply chain considering anticipated regret

Nian Zhang, Qi Tian, Bin Li and Jin Liu

Economic Research-Ekonomska Istraživanja, 2023, vol. 36, issue 2, 2147563

Abstract: Product innovation is a significant marketing strategy for enterprises to attract customers. However, innovative products may not meet consumers’ expectations, where consumers would regret and return after purchasing the products. Firstly, a Stackelberg game is constructed in this paper model under different supply chain power structures. And then, the impact of consumers’ anticipated regret and innovation attributes are discussed on the equilibrium results and supply chain profit through theoretical comparison and numerical simulation. The results show that: (1) Sales enterprise can adopt the strategy of pricing penetration to promote the demand and avoid selling risk. (2) Enterprise can provide customers with high value-added services to increase profit. (3) Manufacturing enterprise can adopt the additive value strategy to promote consumption and gain extra profit. The conclusion can provide reference opinions for enterprises’ innovation and pricing decision-making. However, the different regret coefficients for innovative products and current products are not considered in this paper. Further the situation is considered in which consumers purchase current product, discount product and innovative product.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1331677X.2022.2147563 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:reroxx:v:36:y:2023:i:2:p:2147563

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rero20

DOI: 10.1080/1331677X.2022.2147563

Access Statistics for this article

Economic Research-Ekonomska Istraživanja is currently edited by Marinko Skare

More articles in Economic Research-Ekonomska Istraživanja from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().