Please use this identifier to cite or link to this item: http://localhost/handle/Hannan/520299
Title: Optimal Advance-Selling Strategy for Fashionable Products With Opportunistic Consumers Returns
Authors: Bus. Sch., Nankai Univ., Tianjin, China;Yongjian Li ; Lei Xu ; Tsan-Ming Choi ; Govindan, Kannan
subject: optimisation; pricing; retailing; AFP; APP; NAP; advance-selling with full refund; advance-selling with partial refund; aggregate demand uncertainty; analytical optimization models; consumers classification; consumers face valuation uncertainty; consumers valuation; fashionable products; industrial practice; market condition; newsvendor-type; no advance-selling allowed; normal-selling season; numerical analysis; opportunistic consumers returns; optimal advance-selling strategy; optimal pricing; potential consumer opportunistic returns; product acquisition; refund policies; retailer; strategic options; Analytical models; Consumer behavior; Cost accounting; Educational institutions; Face; Pricing; Uncertainty; Advance-selling; management decision making; marketing-operations; moral-hazard; return policy; valuation uncertainty;
Year: 2014
Publisher: IEEE
Abstract: Advance-selling (AS) is a commonly observed industrial practice in which a retailer allows consumers to prebook the fashionable product before the real selling season starts. Motivated by this practice, this paper studies AS strategy for a retailer who sells a newsvendor-type of fashionable product in light of potential consumer opportunistic returns. In our model, the consumers face valuation uncertainty and know their valuation realization only after product acquisition. There also exists aggregate demand uncertainty, captured in the conventional newsvendor model. All preorders are fulfilled at the beginning of a normal-selling season. We build analytical optimization models and consider three strategic options for the retailer, namely, no advance-selling allowed (NAP), advance-selling with full refund (AFP) and advance-selling with partial refund (APP), where there are two suboptions under APP. We derive the retailer's optimal pricing and refund policies for each option. By comparing the results in the above options, important insights are generated. Finally, we conduct a numerical analysis to further examine the impacts brought by consumers valuation, market condition, and consumers classification on the optimal strategy.
URI: http://localhost/handle/Hannan/277204
http://localhost/handle/Hannan/520299
ISSN: 2168-2216
volume: 44
issue: 7
Appears in Collections:2014

Files in This Item:
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6616619.pdf2.78 MBAdobe PDF
Title: Optimal Advance-Selling Strategy for Fashionable Products With Opportunistic Consumers Returns
Authors: Bus. Sch., Nankai Univ., Tianjin, China;Yongjian Li ; Lei Xu ; Tsan-Ming Choi ; Govindan, Kannan
subject: optimisation; pricing; retailing; AFP; APP; NAP; advance-selling with full refund; advance-selling with partial refund; aggregate demand uncertainty; analytical optimization models; consumers classification; consumers face valuation uncertainty; consumers valuation; fashionable products; industrial practice; market condition; newsvendor-type; no advance-selling allowed; normal-selling season; numerical analysis; opportunistic consumers returns; optimal advance-selling strategy; optimal pricing; potential consumer opportunistic returns; product acquisition; refund policies; retailer; strategic options; Analytical models; Consumer behavior; Cost accounting; Educational institutions; Face; Pricing; Uncertainty; Advance-selling; management decision making; marketing-operations; moral-hazard; return policy; valuation uncertainty;
Year: 2014
Publisher: IEEE
Abstract: Advance-selling (AS) is a commonly observed industrial practice in which a retailer allows consumers to prebook the fashionable product before the real selling season starts. Motivated by this practice, this paper studies AS strategy for a retailer who sells a newsvendor-type of fashionable product in light of potential consumer opportunistic returns. In our model, the consumers face valuation uncertainty and know their valuation realization only after product acquisition. There also exists aggregate demand uncertainty, captured in the conventional newsvendor model. All preorders are fulfilled at the beginning of a normal-selling season. We build analytical optimization models and consider three strategic options for the retailer, namely, no advance-selling allowed (NAP), advance-selling with full refund (AFP) and advance-selling with partial refund (APP), where there are two suboptions under APP. We derive the retailer's optimal pricing and refund policies for each option. By comparing the results in the above options, important insights are generated. Finally, we conduct a numerical analysis to further examine the impacts brought by consumers valuation, market condition, and consumers classification on the optimal strategy.
URI: http://localhost/handle/Hannan/277204
http://localhost/handle/Hannan/520299
ISSN: 2168-2216
volume: 44
issue: 7
Appears in Collections:2014

Files in This Item:
File SizeFormat 
6616619.pdf2.78 MBAdobe PDF
Title: Optimal Advance-Selling Strategy for Fashionable Products With Opportunistic Consumers Returns
Authors: Bus. Sch., Nankai Univ., Tianjin, China;Yongjian Li ; Lei Xu ; Tsan-Ming Choi ; Govindan, Kannan
subject: optimisation; pricing; retailing; AFP; APP; NAP; advance-selling with full refund; advance-selling with partial refund; aggregate demand uncertainty; analytical optimization models; consumers classification; consumers face valuation uncertainty; consumers valuation; fashionable products; industrial practice; market condition; newsvendor-type; no advance-selling allowed; normal-selling season; numerical analysis; opportunistic consumers returns; optimal advance-selling strategy; optimal pricing; potential consumer opportunistic returns; product acquisition; refund policies; retailer; strategic options; Analytical models; Consumer behavior; Cost accounting; Educational institutions; Face; Pricing; Uncertainty; Advance-selling; management decision making; marketing-operations; moral-hazard; return policy; valuation uncertainty;
Year: 2014
Publisher: IEEE
Abstract: Advance-selling (AS) is a commonly observed industrial practice in which a retailer allows consumers to prebook the fashionable product before the real selling season starts. Motivated by this practice, this paper studies AS strategy for a retailer who sells a newsvendor-type of fashionable product in light of potential consumer opportunistic returns. In our model, the consumers face valuation uncertainty and know their valuation realization only after product acquisition. There also exists aggregate demand uncertainty, captured in the conventional newsvendor model. All preorders are fulfilled at the beginning of a normal-selling season. We build analytical optimization models and consider three strategic options for the retailer, namely, no advance-selling allowed (NAP), advance-selling with full refund (AFP) and advance-selling with partial refund (APP), where there are two suboptions under APP. We derive the retailer's optimal pricing and refund policies for each option. By comparing the results in the above options, important insights are generated. Finally, we conduct a numerical analysis to further examine the impacts brought by consumers valuation, market condition, and consumers classification on the optimal strategy.
URI: http://localhost/handle/Hannan/277204
http://localhost/handle/Hannan/520299
ISSN: 2168-2216
volume: 44
issue: 7
Appears in Collections:2014

Files in This Item:
File SizeFormat 
6616619.pdf2.78 MBAdobe PDF