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| Research on Two Stage Pricing Strategy of Competitive Manufacturers Considering Negative Reviews Sensitivity and Response |
| ZHOU Yu，WANG Daoping，DONG Hanxi |
University of Science and Technology Beijing, Beijing, China |
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Abstract Considering two competitive manufacturers of experiential products sold in two stages and analyzing the impact of consumers’ comments in first stage on consumers’ product expectation valuation and product market demand in second stage. Then, a two-stage pricing decision-making model is constructed in the case of neither manufacturer responds to negative reviews，a single manufacturer responds to negative reviews and both manufacturers respond to negative reviews. The effects of product quality difference and product mismatch on manufacturers’ decision-making results and benefits in different situations are solved and discussed. The results show that: when the quality of the manufacturer’s products is lower than that of the competitors, the effort level of the response is higher in the case of a single response to the negative reviews than in the case of both manufacturers respond to the negative reviews. When the negative reviews sensitivity is too low, it is bad for manufacturers of high-quality products. When the negative response cost coefficient is controlled within a certain range, the manufacturer with higher product quality in the both-response scenario can obtain a higher profit advantage than competitor compared to the no-response scenario.
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Received: 09 June 2021
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