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Pricing strategy with customers’ privacy concerns in Smart-X systems
Enterprise Information Systems ( IF 4.4 ) Pub Date : 2020-08-19 , DOI: 10.1080/17517575.2020.1802515
Shao-Zeng Dong, Liu Yang, Bin Ding, Chia-Huei Wu, Xue-Feng Shao

ABSTRACT

This paper investigates the impact of privacy concerns on customers’ purchasing decisions and service providers’ pricing strategies in Smart-X systems. We develop profit maximisation models to test purchasing decisions and pricing strategies of advanced and basic services in monopoly and competitive markets. We find customers’ privacy costs and service differentiation determine each service provider’s pricing decision and their relative market position. In asymmetrical competition markets, service providers can only coexist when the degree of service differentiation is moderate. These findings have practical implications for the increasingly competitive global markets of specialised products that require pre- and post-purchase services.



中文翻译:

Smart-X 系统中客户隐私问题的定价策略

摘要

本文调查了 Smart-X 系统中隐私问题对客户购买决策和服务提供商定价策略的影响。我们开发利润最大化模型来测试垄断和竞争市场中高级和基础服务的采购决策和定价策略。我们发现客户的隐私成本和服务差异化决定了每个服务提供商的定价决策及其相对市场地位。在非对称竞争市场中,服务提供者只有在服务差异化程度适中时才能共存。这些发现对于需要售前和售后服务的专业产品的竞争日益激烈的全球市场具有实际意义。

更新日期:2020-08-19
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