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Pricing strategies under markets with time gap between purchase and consumption

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  • Seo, Kyowon
  • Go, Sarang
  • Kim, Byungdo

Abstract

In this study, we aim to determine the specific probability range, under which each price strategy outperforms others and expect how consumers react under the situation. In situations wherein consumer utility uncertainty is derived from the time gap between purchase and consumption, various pricing strategies, such as the early bird or option strategy, have been applied in order to resolve this uncertainty.

Suggested Citation

  • Seo, Kyowon & Go, Sarang & Kim, Byungdo, 2020. "Pricing strategies under markets with time gap between purchase and consumption," Journal of Business Research, Elsevier, vol. 120(C), pages 312-320.
    • Handle: RePEc:eee:jbrese:v:120:y:2020:i:c:p:312-320
    DOI: 10.1016/j.jbusres.2020.01.066
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