Abstract:
Considering the pricing problem of one retailer selling two alternative fresh products, multi-stage decision models are constructed respectively under three pricing strategies. The optimal fixed price, optimal discount price and optimal bundling price are obtained. The factors impacting on retailer’s selection of pricing strategy are analyzed together with its influence degrees by using the numerical simulation. The study results shows that along with the increase of the freshness threshold, the product selling price rises under three strategies; and the optimal fixed price rise when the sales period proximity increases. Comparing the profits of retailer under three strategies, sometimes the bundling pricing is dominant strategy, sometimes the discount pricing is the dominant strategy, and the parameters are the key influence factors.