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has been cited by the following article:

• TITLE: Dynamic Pricing of Perishable Products under Consumer Factor

  AUTHORS: Yanming Ge, Jianxin Zhang

  KEYWORDS: Revenue Management, Dynamic Pricing, Perishable Product, Bellman Equation

  JOURNAL NAME: Journal of Service Science and Management, Vol.4 No.4, December 7, 2011

  ABSTRACT: With effect of consumer factor considered, a model for dynamic pricing of perishable products is proposed. By this model, we obtained a property of the value function: marginal value is a decreasing function of the capacity and an increasing function of the consumer factor. Basing on this property, we proposed the following pricing strategy: according to the regions that the perishable products are sold, we adopt the appropriate consumer factor and then use the routine pricing strategy. This strategy not only maximizes the retailer’s revenue but also improves its service level. Lastly, a constructive example is discussed.