A Research on Apparel Retailers' Dynamic Pricing and Ordering Strategies Considering Fashion Efforts

doi:10.3969/j.issn.1007-7375.2022.03.011

Abstract

Abstract: Considering the influence of fashion effort input on retailers' dynamic pricing and revenue, a dynamic model of clothing retailers' revenue maximization is constructed, and the Pontryagin maximum method is used to solve it, and the clothing retailer's dynamic pricing, fashion effort input and ordering strategies are analyzed. Numerical simulation verification shows that at the beginning of sales, retailers should set lower retail prices to stimulate demand; and after retailers put in fashion efforts, sales prices will also increase. For products with slow fashion decay, retailers have invested more fashion efforts to achieve significant results. When consumers are more sensitive to product prices, retailers should not invest in fashion efforts.

Key words: dynamic pricing, fashion effort, optimal control theory, pricing and ordering strategies.

CLC Number:

SHI Baoli, XU Qi, SUN Zhongmiao. A Research on Apparel Retailers' Dynamic Pricing and Ordering Strategies Considering Fashion Efforts[J]. Industrial Engineering Journal, 2022, 25(3): 95-100.

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