With the development of product development
technology and the rapid rise of online retailing, the market competition
becomes increasingly fierce. Based on consumer utility function, this article
established a two-stage dynamic pricing model and discussed pricing strategies
under consumer behavior and market competition. Findings indicate that product
quality difference and consumer valuation decreasing coefficient determine the
order of the consumer purchase decisions. The firm who provides lower-quality
products suffered more loss than the firm who provides high-quality products.
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