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| Research on the Online Retail Pricing Model based on Online Reviews |
| GUO Kaiqiang1,2,WANG Hongwei3,ZHENG Han3 |
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Abstract Online retail pricing has always been a heated topic among economic activities. With the popularity and development of the Internet and e-commerce, the pricing methods and strategies have been updated. This paper establishes a review-related pricing model on the basis of utility theory. The model takes into account the two-stage sale of the new products in the B2C market, while the model include factors which can capture and measure the relationship between price and product review. By Numerical Simulation, this paper also gives further analysis on the relationship between Maximum revenue and other factors, including the consumer price sensitivity, the volume of reviews and the good rating of reviews. Results show that given the volume of online reviews is large and the consumer price sensitivity is high, the lower the price of first stage, the larger the profit will be made.
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Received: 30 August 2013
Published: 15 April 2014
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Corresponding Authors:
WANG Hongwei
E-mail: hwwang@tongji.edu.cn
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2014, Vol. 
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