Documents disponibles écrits par cet auteur

Selling to conspicuous consumers / Necati Tereyağoğlu in Management science, Vol. 58 N° 12 (Décembre 2012) 

Public ISBD [article]  in Management science > Vol. 58 N° 12 (Décembre 2012) . - pp. 2168-2189 Titre : Selling to conspicuous consumers : Pricing, production, and sourcing decisions Type de document : texte imprimé Auteurs : Necati Tereyağoğlu, Auteur ; Senthil Veeraraghavan, Auteur Année de publication : 2013 Article en page(s) : pp. 2168-2189 Note générale : Management Langues : Anglais (eng) Mots-clés : Strategic  customer  behavior  Game  theory  Conspicuous  consumption  Pricing  Scarcity  Sourcing Résumé : Consumers often purchase goods that are “hard to find” to conspicuously display their exclusivity and social status. Firms that produce such conspicuously consumed goods such as designer apparel, fashion goods, jewelry, etc., often face challenges in making optimal pricing and production decisions. Such firms are confronted with precipitous trade-off between high sales volume and high margins, because of the highly uncertain market demand, strategic consumer behavior, and the display of conspicuous consumption. In this paper, we propose a model that addresses pricing and production decisions for a firm, using the rational expectations framework. We show that, in equilibrium, firms may offer high availability of goods despite the presence of conspicuous consumption. We show that scarcity strategies are harder to adopt as demand variability increases, and we provide conditions under which scarcity strategies could be successfully adopted to improve profits. Finally, to credibly commit to scarcity strategy, we show that firms can adopt sourcing strategies, such as sourcing from an expensive production location/supplier or using expensive raw materials. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/12.toc [article] Selling to conspicuous consumers : Pricing, production, and sourcing decisions [texte imprimé] / Necati Tereyağoğlu, Auteur ; Senthil Veeraraghavan, Auteur . - 2013 . - pp. 2168-2189. Management Langues : Anglais (eng) in Management science > Vol. 58 N° 12 (Décembre 2012) . - pp. 2168-2189 Mots-clés : Strategic  customer  behavior  Game  theory  Conspicuous  consumption  Pricing  Scarcity  Sourcing Résumé : Consumers often purchase goods that are “hard to find” to conspicuously display their exclusivity and social status. Firms that produce such conspicuously consumed goods such as designer apparel, fashion goods, jewelry, etc., often face challenges in making optimal pricing and production decisions. Such firms are confronted with precipitous trade-off between high sales volume and high margins, because of the highly uncertain market demand, strategic consumer behavior, and the display of conspicuous consumption. In this paper, we propose a model that addresses pricing and production decisions for a firm, using the rational expectations framework. We show that, in equilibrium, firms may offer high availability of goods despite the presence of conspicuous consumption. We show that scarcity strategies are harder to adopt as demand variability increases, and we provide conditions under which scarcity strategies could be successfully adopted to improve profits. Finally, to credibly commit to scarcity strategy, we show that firms can adopt sourcing strategies, such as sourcing from an expensive production location/supplier or using expensive raw materials. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/12.toc