Journal ArticleDOI
Competing with Copycats When Customers Are Strategic
Hubert Pun,Gregory D. DeYong +1 more
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TLDR
It is found that, interestingly, lower quality levels of the manufacturer's product may increase the manufacturer’s prices and profit and the manufacturer may be worse off when customers are more likely to purchase its product immediately rather than wait for a price reduction or for the copycat's product.Abstract:
In this paper, we use a two-period game theoretical model to examine the decisions of a manufacturer and a copycat firm who are competing for strategic customers. The manufacturer decides on the amount of its market expansion advertising investment in the first period and on its pricing strategy in both periods. Advertising increases the “size of the pie,” but eventually the manufacturer may end up inadvertently sharing the benefits with the copycat. After the first period, the copycat makes a market-entry decision, and, if it opts to enter, it also decides on a pricing strategy. The customers are strategic, and they decide whether or not to buy, when to buy, and which product to buy. We find that, interestingly, lower quality levels of the manufacturer’s product may increase the manufacturer’s prices and profit. Moreover, the manufacturer may be worse off when customers are more likely to purchase its product immediately rather than wait for a price reduction or for the copycat’s product. Finally, the co...read more
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Journal ArticleDOI
Blockchain Adoption for Combating Deceptive Counterfeits
TL;DR: In this article, the authors examine how blockchain technology can be used to combat counterfeiting and show that blockchain can be more effective than pricing strategy in eliminating the post-purchase regret and improving social welfare.
Journal ArticleDOI
Blockchain Adoption for Combating Deceptive Counterfeits
TL;DR: In this paper, the authors examine how blockchain technology can be used to combat counterfeiting and show that blockchain can be more effective than pricing strategy in eliminating the post-purchase regret and improving social welfare.
Journal ArticleDOI
Combating Copycats in the Supply Chain with Permissioned Blockchain Technology
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Renting fashion with strategic customers in the sharing economy
Quan Yuan,Bin Shen,Bin Shen +2 more
TL;DR: Wang et al. as mentioned in this paper examined the impacts of consumer behavior on fashion retailing, and also the tradeoffs between product rental and purchase in the presence of rental services, and identified that the retailer, the renter and the entire retail system could perform better when the retailer and retailer are integrated into one group.
Journal ArticleDOI
Pricing and production decisions in a closed-loop supply chain considering strategic consumers and technology licensing
TL;DR: It is shown that theDemand of new products decreases and the demand of remanufactured products increases as consumers become more strategic and the manufacturer suffers a smaller profit loss when he licenses the third party to remanufacture.
References
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Journal ArticleDOI
Why Do Consumers Buy Counterfeit Luxury Brands
TL;DR: The authors showed that consumers' desire for counterfeit luxury brands hinges on the social motivations underlying their luxury brand preferences, and that the social functions served by consumers' luxury brand attitudes can be influenced by elements of the marketing mix, thus enabling marketers to curb the demand for counterfeit brands through specific marketing-mix actions.
Journal ArticleDOI
Optimal Pricing of Seasonal Products in the Presence of Forward-Looking Consumers
Yossi Aviv,Amit Pazgal +1 more
TL;DR: It is found that the seller cannot avoid the adverse impact of strategic consumer behavior even under low levels of initial inventory, and while the seller expects customers to be more concerned about product availability at discount time, he cannot use high-price “betting” strategies as he would in the case of low inventory and myopic customers.
Journal ArticleDOI
The Value of Fast Fashion: Quick Response, Enhanced Design, and Strategic Consumer Behavior
Gérard P. Cachon,Robert Swinney +1 more
TL;DR: It is concluded that fast fashion systems can be of significant value, particularly when consumers exhibit strategic behavior, and when both quick response and enhanced design are combined in a fast fashion system, the firm typically enjoys a greater incremental increase in profit than the sum of the increases resulting from employing either system in isolation.
Journal ArticleDOI
Purchasing, Pricing, and Quick Response in the Presence of Strategic Consumers
Gérard P. Cachon,Robert Swinney +1 more
TL;DR: The value of quick response to a retailer is generally much greater in the presence of strategic consumers than without them, and provides more value by allowing a retailer to control the negative consequences of strategic consumer behavior.
Journal ArticleDOI
Strategic Customer Behavior, Commitment, and Supply Chain Performance
Xuanming Su,Fuqiang Zhang +1 more
TL;DR: In this article, the impact of strategic customer behavior on supply chain performance is studied, where the seller initially charges a regular price but may salvage the leftover inventory at a lower salvage price after random demand is realized.
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