Summary: | 碩士 === 國立中興大學 === 行銷學系所 === 106 === In today''s highly competitive environment of various types of shops, most stores rely on price promotions to sell, the proportion of annual sales with price promotions has reached a high level. As most retailers conduct price promotions, it is an important issue for them to choose the adequate promotion strategies to maximize their profits. From the retailer''s point of view, this paper discusses how to conduct promotional strategies in a better way.
This study focuses on the relationship between the retailer''s price during the promotion period, total annual demand, inventory holding costs, the proportion of time spent on the promotion period for the entire year, the demand for the promotion period, the proportion of the demand for the entire year, the purchasing cost, the setup cost , and the retailer’s price promotion strategy.
We show that the retailer''s price during the promotion period, annual total demand, inventory holding costs, the proportion of time spent in the promotion period as a percentage of the entire year, the demand for the promotion period as a percentage of the demand for the whole year, and setup cost are the factors having significant influences on the retailer’s pricing strategy.
Our research proposes the higher the price of the retailer''s promotion period and the setup cost , the more likely the retailer will choose the price promotion strategy (named PROMO strategy); and the higher the annual total demand, inventory holding costs, time of the promotion period account for the proportion of the entire year, the promotion period and the proportion of demand in demand for the entire year, the more likely the retailers will choose the daily minimum price strategy (named EDLP strategy).
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