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Quality-Contingent Pricing Decisions for Network Marketing Firms with Quality-Sensitive Demand
质量敏感需求下的网络营销企业质量相关定价决策

Keywords: quality-contingent pricing,quality-sensitive demand,network marketing firm,decision model,electronic markets
质量相关定价
,质量敏感需求,网络营销企业,决策模型,电子市场

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Abstract:

With information asymmetry existing among partners,the quality uncertainty is serious in electronic markets,therefore,it is important for network marketing firms how to signal quality of products through price policy.At first,this paper builds a model of quality-contingent pricing with quality-sensitive demand and analyzes the existence of the optimal solution.Through numerical example,the paper studies the optimal pricing strategies for network marketing firms when electronic markets have different estimation of quality,and then discusses the impact of parameters in the model on optimal decision.These results are helpful to the decision-making of quality-contingent pricing for network marketing firms in electronic markets.

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