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Dynamic pricing strategy for seasonal products under different demand intensity

Author(s): Gu Ming-chong, Liu Hong, Yan Ji

Due to the sales time is shorter of seasonal products, how to sell the product to consumers at the best price in the sales period becomes the key determinants of retailers' income level. This paper set the seasonal products as the research object; maximize the retailers' profit as the goal, using the revenue management thought to research the corresponding dynamic pricing problems of seasonal products in different intensities of demand. The purpose is to discuss the different demand intensity and inventory levels under the impact on the retailer's optimal pricing. By setting a certain type of poison type dynamic pricing model, obtained in determining the type of demand under the condition of the retailer's optimal pricing and optimal benefits, with the result of numerical example to analyze the existing features, summed up the optimal pricing consumer demand is increasing function of the model; Product sales period is the product of the optimal pricing of decreasing function; Under the certain demand intensity, the optimal pricing with the increase of inventory was first increasing then decreasing trend

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