Service and Price Competition in a Variety Seeking Market

被引:0
|
作者
Wei, Ying [1 ]
Xiong, Liyang [1 ]
Wang, Yulan [2 ]
机构
[1] Jinan Univ, Sch Management, Dept Business Adm, Guangzhou, Guangdong, Peoples R China
[2] Hong Kong Polytech Univ, Dept Logist & Maritime, Hong Kong, Hong Kong, Peoples R China
关键词
variety seeking; service; pricing; differentiation; MODEL;
D O I
暂无
中图分类号
TP [自动化技术、计算机技术];
学科分类号
0812 ;
摘要
We study service and pricing competition in a duopoly market where consumers are variety seeking, which is modeled as a decrease in the willingness to pay for the product purchased on the previous purchase occasion. Under a two-stage Hotelling-type model, we show that the presence of variety seeking consumers induces higher service levels in Period 2, if prices are committed at the beginning. The higher service in Period 2 represents the incentive that firms need to offer to prevent the variety seeking consumers from switching. Furthermore, if consumers on average have a higher propensity to one firm, the variety seeking behavior increases both the price and service gaps, thus to exaggerate market differentiation. In addition, variety seeking leads to higher total profits and a higher consumer surplus.
引用
收藏
页数:6
相关论文
共 50 条
  • [1] Price Competition in Markets with Consumer Variety Seeking
    Seetharaman, P. B.
    Che, Hai
    [J]. MARKETING SCIENCE, 2009, 28 (03) : 516 - 525
  • [2] Competition in a Variety Seeking Market With Brand Name Awareness
    Xiong, Liyang
    Yu, Honglei
    Wang, Zhanqing
    [J]. SAGE OPEN, 2021, 11 (02):
  • [3] Competition with Variety Seeking and Habitual Consumption: Price Commitment or Quality Commitment?
    Xiong, Liyang
    Liu, Guan
    Jiang, Shi
    [J]. MATHEMATICAL PROBLEMS IN ENGINEERING, 2017, 2017
  • [4] SPATIAL PRICE AND VARIETY COMPETITION IN AN URBAN RETAIL MARKET - A NESTED LOGIT ANALYSIS
    DEPALMA, A
    LINDSEY, R
    VONHOHENBALKEN, B
    WEST, DS
    [J]. INTERNATIONAL JOURNAL OF INDUSTRIAL ORGANIZATION, 1994, 12 (03) : 331 - 337
  • [5] A Note on Price Competition Models in a Sharing Economy Service Market
    Lee, Doo Ho
    [J]. INDUSTRIAL ENGINEERING AND MANAGEMENT SYSTEMS, 2020, 19 (02): : 367 - 373
  • [6] Price competition in product variety networks
    Ushchev, Philip
    Zenou, Yves
    [J]. GAMES AND ECONOMIC BEHAVIOR, 2018, 110 : 226 - 247
  • [7] Price and distribution range of logistics service providers considering market competition
    Du, Fei
    Ang, Sheng
    Yang, Feng
    Yang, Chenchen
    [J]. ASIA PACIFIC JOURNAL OF MARKETING AND LOGISTICS, 2018, 30 (04) : 762 - 778
  • [8] Positioning and Pricing in a Variety Seeking Market
    Sajeesh, S.
    Raju, Jagmohan S.
    [J]. MANAGEMENT SCIENCE, 2010, 56 (06) : 949 - 961
  • [9] RENG SEEKING AND MARKET COMPETITION
    ZHOU, HH
    [J]. PUBLIC CHOICE, 1995, 82 (3-4) : 225 - 241
  • [10] Price Competition and Value-Added Service Differentiation in Power Sale Market
    Wang, Wei
    Wang, Xi
    Xu, Hao
    Ren, Zhichao
    Chen, Shi
    Jia, Chuyun
    [J]. 2019 IEEE 2ND INTERNATIONAL CONFERENCE ON ELECTRONICS AND COMMUNICATION ENGINEERING (ICECE 2019), 2019, : 387 - 391