Abstract:
The influence of user reviews was analyzed to determine whether product customization should be adopted by online sales enterprise, how differentiated pricing should be established, and how online reviews affect these strategic decisions. the consumer market was segmented into conventional and uniqueness-seeking categories based on personalization preference levels. The market is segmented into ordinary consumers and uniqueness-seeking consumers based on their level of personalization. Considering a two-dimensional heterogeneity preference of these two types of consumers for product quality and appearance, the profit maximization models are constructed respectively to solve the equilibrium pricing strategy of standard products and customized products. The results indicate that: 1) When there is a high consumer willingness to pay for quality and a significant mismatch cost per unit, the enterprise should choose customized product strategy to meet the individual needs of consumers. With the improvement of the actual quality of products, the existence of online reviews will make the enterprise more and more inclined to product customization. 2) The price of customized products is not always higher than the price of standard products. When consumers' relative willingness to pay for matching dimension and product quality is low, the price of standard products is likely to be higher than that of customized products, regardless of the actual quality. 3) When the product is not customized, if the actual quality of the product is low, the comment information will reduce the price and profit of the product. When product customization is carried out, in addition to the actual quality, the decision to open online reviews is also related to the relative quality perception of consumers. When the relative quality perception of consumers is high, regardless of the actual quality of the product, the comment information will reduce the price and profit of customized products, and enterprise should close online reviews.