DYNAMIC PRICING STRATEGIES AND CONSUMER BEHAVIOR: EVIDENCE FROM E-COMMERCE PLATFORMS
Abstract
This study explores dynamic pricing strategies inside e-commerce structures, focusing at the interaction between purchaser conduct and pricing decisions made through both producers and e-trade companies in a global context. We establish a choice-making model where the e-trade firm acts as a pacesetter and the manufacturer as a follower. Two eventualities are analyzed: one in which the producer operates its own on-line save and any other wherein it makes use of the e-commerce firm’s platform. Through mathematical modeling and numerical evaluation, we become aware of key equilibrium strategies and pricing behaviors for both members. Findings display that after producers preserve their own web sites, e-commerce corporations can provide lower costs to new clients to decorate competitiveness. Conversely, when manufacturers leverage the e-trade platform, their pricing strategy is prompted through the referral fee charge, with decrease costs for brand spanking new customers being not unusual. The results indicate that changes in referral expenses and franchise costs significantly impact the producers' desire to sell thru the e-commerce platform rather than establishing unbiased web sites. This studies affords precious insights into how dynamic pricing and consumer segmentation impact strategic decisions in the rapidly evolving panorama of on line income.
Keyword : Dynamic Pricing, Consumer Behavior, E-Commerce Platforms, Pricing Strategies, Manufacturer Decisions, Referral Fees, Franchise Fees, Online Sales, International Market, Competitive Strategy.
This work is licensed under a Creative Commons Attribution 4.0 International License.
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