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- Type of Document: M.Sc. Thesis
- Language: Farsi
- Document No: 57673 (01)
- University: Sharif University of Technology
- Department: Industrial Engineering
- Advisor(s): Sedghi, Nafiseh
- Abstract:
- Pricing and revenue management are among the most important decisions for any economic enterprise. Several factors can influence decisions in this area and change the company’s pricing strategy, including uncertainties in product demand and customer preferences. This factor becomes particularly significant when the product is newly launched. Therefore, over time, customer preferences and willingness to pay may increase through various advertisements such as customer reviews and word-of-mouth. With rising demand, the seller has the opportunity to raise prices in the next periods. However, price increases can lead to unfair pricing perceptions by customers, hence reducing their purchasing utility and decreasing demand. In this study, a seller of a new-launched product is considered, who intends to set prices for the product over two periods while considering consumers’ fairness concerns. In addition to the pricing decision, the seller faces the problem of selecting online sales channels in each period (agency selling or direct selling). The findings of the research show that by incorporating consumers’ fairness concerns, not only does the pricing strategy modify, but also the sales channels’ structure changes. Additionally, results indicated the intensity of the fairness concerns impact on the seller’s profit and also the effects of neglecting these considerations in the model
- Keywords:
- Pricing ; Direct Selling Channel ; Agency Selling Channel ; Marketplace ; Fairness Concerns
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