Internal reference price is an important factor when a consumer makes a purchasing decision. When the consumer adjust their internal reference prices the demand function of the product will be changed accordingly. This paper intends to discuss: (1) the effect of the dissemination of new price information on consumer’s internal reference price adjustment, purchasing quantity determination, and the shift of demand function, (2) the establishment of a new dynanic demand function mentioned above, (3) the application of the dynamic demand function in pricing strategy.
關聯:
Journal of information and optimization sciences vol. 19, no. 3 pp.337-352
