Advance Selling Strategies for Retailers Taking into Account the Time-value of Money
Advance selling occurs when sellers allow buyers to purchase at a time preceding consumption.Existing researches on advance selling mainly focus on pricing strategies while the quantification of lead-time is seldom discussed.Considering price and lead-time in advance selling as variables,we establish an optimization model under the framework of Stackelberg game.By comparing results from the model with realistic cases,we find that the optimum advance selling strategies should consist of two categories:super low price with ultra-long lead-time and reasonable price discount with short lead-time.Further analysis on the two strategies identifies the conditions under which the profit is maximized.Finally,we use numeric examples to illustrate the relationship between the two typical strategies and to verify the conclusions drawn in this paper.
advance sellingtime-value of moneycustomer preferenceMIHuawei
NETL
NSTL
万方数据
维普
