Pricing decisions of update products based on market segmentation

This paper considers a supply chain with one manufacturer and one retailer. The manufacturer retails two products, one of which is the old product; the other is the updated product, to the retailer. The decentralized and centralized pricing decision models based on market segmentation are established, and the effects of consumer preference on pricing and profits are obtained by comparing and analyzing the results. At last, numerical examples illustrate the effectiveness of presented models.