Title :
Optimal pricing and online retail service for luxury fashion with social influence
Author :
Bin Shen ; Rongrong Qian ; Lei Chen ; Jochen, Strahle
Author_Institution :
Glorious Sun Sch. of Bus. & Manage., Donghua Univ., Shanghai, China
Abstract :
In the luxury fashion industry, consumers could be categorized into two groups: fashion leader and fashion follower. Both groups of consumers purchase luxury fashion products aim at satisfying both their functional needs and social needs (i.e., social influence). Thus the demands of both consumer groups are related. In this paper, we construct a model to examine the effects of pricing and online retail service in luxury fashion firms with social influence. To maximize profit, we identify the optimal prices and online retail service when the luxury fashion firms provide the non-differentiated and differentiated online retail services, respectively. More insights are discussed.
Keywords :
Internet; pricing; profitability; retail data processing; differentiated online retail services; fashion follower; fashion leader; luxury fashion industry; luxury fashion products; nondifferentiated online retail services; optimal pricing effect; social influence; Advertising; Industries; Pricing; Sensitivity; Sun; Supply chains; luxury fashion; optimal pricing and service; social influence;
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2015 12th International Conference on
Conference_Location :
Guangzhou
Print_ISBN :
978-1-4799-8327-8
DOI :
10.1109/ICSSSM.2015.7170336