IDEAS home Printed from https://ideas.repec.org/h/spr/isochp/978-0-387-98026-3_13.html
   My bibliography  Save this book chapter

Mitigating the Adverse Impact of Strategic Waiting in Dynamic Pricing Settings: A Study of Two Sales Mechanisms

In: Consumer-Driven Demand and Operations Management Models

Author

Listed:
  • Yossi Aviv

    (Washington University in St. Louis)

  • Christopher S. Tang

    (University of California)

  • Rui Yin

    (Arizona State University)

Abstract

As post-season clearance sales become more prevalent, more customers postpone their purchases and wait for the clearance price. This form of strategic waiting can reduce retailers’ revenue. As a way to mitigate the negative effect of strategic waiting, we analyze two sales mechanisms in this chapter. The first sales mechanism deals with the way inventory information is conveyed to customers. Specifically, we consider two types of inventory display formats under which the retailer can either display all (DA) available units to the customers or display one (DO) unit at a time so that customers have perfect (imperfect) information about the actual inventory level under the DA (DO) display format. The second sales mechanism involves an additional purchasing option that allows each customer to make a “non-withdrawable reservation.” Specifically, if a customer reserves an item during the season and the reserved item remains unsold at the end of the season, then this customer is obligated to purchase the reserved item at the clearance price. In this chapter, we analyze the implications of these two sales mechanisms on the customers’ strategic purchasing behavior, the retailer’s optimal pricing and ordering decisions, and the retailer’s expected profit.

Suggested Citation

  • Yossi Aviv & Christopher S. Tang & Rui Yin, 2009. "Mitigating the Adverse Impact of Strategic Waiting in Dynamic Pricing Settings: A Study of Two Sales Mechanisms," International Series in Operations Research & Management Science, in: Christopher S. Tang & Serguei Netessine (ed.), Consumer-Driven Demand and Operations Management Models, edition 1, chapter 0, pages 353-370, Springer.
    • Handle: RePEc:spr:isochp:978-0-387-98026-3_13
    DOI: 10.1007/978-0-387-98026-3_13
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qing Li & Christopher S. Tang & He Xu, 2020. "Mitigating the Double‐Blind Effect in Opaque Selling: Inventory and Information," Production and Operations Management, Production and Operations Management Society, vol. 29(1), pages 35-54, January.
    2. Tang, Christopher S., 2010. "A review of marketing-operations interface models: From co-existence to coordination and collaboration," International Journal of Production Economics, Elsevier, vol. 125(1), pages 22-40, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:isochp:978-0-387-98026-3_13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.