Product Demand Forecasting and Dynamic Pricing considering Consumers’ Mental Accounting and Peak-End Reference Effects
Joint Authors
Source
Journal of Applied Mathematics
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-09-02
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Abstract EN
We introduce a demand forecasting model for a monopolistic company selling products to consumers with double-entry mental accounting, which means consumers experience pleasure when consuming goods or service and feel pains when paying for them.
Moreover, as the monopolist changes prices, consumers form a reference price that adjusts an anchoring standard based on the lowest price that they perceived, namely, the peak-end anchoring.
We obtain the steady state prices under three different payment schemes for two- and infinite-period.
We also analyze the relationship between these steady prices and maximal profit and compare the steady state prices of different payment schemes by changing the double-entry mental accounting’s parameters through numerical examples.
The proposed model is computationally tractable for demand forecasting of realistic size.
American Psychological Association (APA)
Bi, Wenjie& Liu, Mengqi. 2014. Product Demand Forecasting and Dynamic Pricing considering Consumers’ Mental Accounting and Peak-End Reference Effects. Journal of Applied Mathematics،Vol. 2014, no. 2014, pp.1-10.
https://search.emarefa.net/detail/BIM-1037733
Modern Language Association (MLA)
Bi, Wenjie& Liu, Mengqi. Product Demand Forecasting and Dynamic Pricing considering Consumers’ Mental Accounting and Peak-End Reference Effects. Journal of Applied Mathematics No. 2014 (2014), pp.1-10.
https://search.emarefa.net/detail/BIM-1037733
American Medical Association (AMA)
Bi, Wenjie& Liu, Mengqi. Product Demand Forecasting and Dynamic Pricing considering Consumers’ Mental Accounting and Peak-End Reference Effects. Journal of Applied Mathematics. 2014. Vol. 2014, no. 2014, pp.1-10.
https://search.emarefa.net/detail/BIM-1037733
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1037733