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| Pricing Decision for Fresh Product Retailer with Implementation of BOPS Considering Consumers’ Demand Heterogeneity |
| LI Lin，YU Jie，ZHU Tingting，FAN Tijun |
| East China University of Science and Technology, Shanghai, China |
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Abstract With the rapid development of Internet technologies, more and more fresh food retailers are exploring new ways to sell products. This research studies a fresh product retailer who owns dual sales channels in BOPS and tries to help the fresh food retailer make pricing decisions. With the consideration of cross-channel demand heterogeneity, a pricing decision model with the same retail price for both online and offline channels was established. Based on the pricing decision model, this study develops three pricing models with discounts for offline consumers, online consumers and BOPS consumers, respectively and further designs two joint pricing strategies which combine with the BOPS discount strategy. The numerical studies are used to verify and expand the conclusions. The results show that online and offline channel discount strategies are mutually exclusive. The BOPS discount strategy will be better than the other two discount strategies when there is a higher proportion of distribution and reasonable unit delivery cost. Moreover, the greater the sensitivity coefficient is, the wider the scope of the strategy can be used; Joint discount strategy can increase retailer profit on a larger scale.
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Received: 28 June 2020
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