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Consumer-Driven Demand and Operations Management Models - A Systematic Study of Information-Technology-Enabled Sales Mechanisms
Preface
6
References
8
Introduction
9
Overall Structure
10
Chapter Highlights
10
References
13
Acknowledgments
14
Contents
15
Rational Consumer Behavior: Endogenous Decision Making Mechanisms
23
Cheap Talk in Operations: Role of Intentional Vagueness
24
1.1 Introduction
25
1.2 Classical Cheap Talk Game
27
1.3 Service Application
29
1.4 Retail Application
39
1.5 Summary
52
1.6 The Past and the Future
53
References
56
Product Design in a Market with Satisficing Customers
58
2.1 Introduction
58
2.2 Literature Survey
63
2.3 Applications and Variations to Basic Model
64
2.4 Analysis of General Model
68
2.5 Extensions
72
2.6 Concluding Remarks: Satisficers vs. Utility Maximizers
76
2.7 Proofs
77
References
81
The Effect of Assortment Rotation on Consumer Choice and Its Impact on Competition
84
3.1 Introduction
84
3.2 Literature Review
88
3.3 The Multi-period Utility Model with Satiation
90
3.4 Competing on Assortment Rotation
92
3.5 Conclusions
98
References
99
Models of Herding Behavior in Operations Management
101
4.1 Introduction
102
4.2 Related Literature
105
4.3 Herding in a Single Queue
106
4.4 Herding and Queue Selection
111
4.5 Discussion and Further Research Opportunities
127
References
131
Organizational Strategies for Managing Rational/ Strategic Consumer Behavior
133
Internet-Based Distribution Channel for Product Diversion with Potential Manufacturer's Intervention
134
5.1 Introduction
135
5.2 Literature Review
138
5.3 Problem Description
140
5.4 Retailer-Only Secondary Market
142
5.5 ManufacturerÌs Intervention
146
5.6 Discussion and Conclusion
160
5.7 Appendix
163
References
172
Managing Client Portfolio in a Two-Tier Supply Chain
174
6.1 Introduction
174
6.2 Literature Review
177
6.3 The Basic Model
179
6.4 The Bullwhip Effect with Multiple Clients
180
6.5 Client Portfolio
182
6.6 Conclusion
183
Appendix
185
References
195
Strategic Customer Behavior and the Benefit of Decentralization
196
7.1 Introduction
196
7.2 Durable Goods
197
7.3 Perishable Goods
205
7.4 Conclusion and Future Research
215
Appendix
217
References
220
Product Strategies for Managing Rational/ Strategic Consumer Behavior
221
Is Assortment Selection a Popularity Contest?
222
8.1 Introduction
223
8.2 Literature Review
224
8.3 Models
225
8.4 Analytical Results and Numerical Observations
232
8.5 Concluding Remarks
243
References
244
Product Design, Pricing, and Capacity Investment in a Congested Production System
246
9.1 Introduction
246
9.2 Literature Review
248
9.3 Basic Model and Assumptions
250
9.4 Quadratic Cost Functions
251
9.5 General Power Cost Functions
255
9.6 Conclusions and Current Research
258
Appendix
260
References
268
Selling to Strategic Customers: Opaque Selling Strategies
269
10.1 Introduction
269
10.2 Literature Review
273
10.3 FirmÌs Selling Strategies Under Deterministic Demand
279
10.4 Modeling Uncertain Demand: The Effect of Uncertainty on Opaque Selling Strategies
287
10.5 Other Related Considerations and Future Research
295
10.6 Appendix A: Deterministic Demand
298
10.7 Appendix B: Uncertain Demand
308
References
315
Competing Through Mass Customization
317
11.1 Introduction
318
11.2 Model
321
11.3 Pricing Game
323
11.4 The Adoption Game
325
11.5 MC vs. Traditional Approach
327
11.6 Comparative Statics: Conditions Favoring MC
330
11.7 Concluding Remarks
332
References
334
Operational Strategies for Managing Rational/ Strategic Consumer Behavior
337
Counteracting Strategic Consumer Behavior in Dynamic Pricing Systems
338
12.1 Introduction
338
12.2 The Effectiveness of Price Segmentation in Face of Strategic Customers
339
12.3 Price Commitments
348
12.4 Capacity Rationing
349
12.5 Internal Price-Matching Policies
358
12.6 Limiting Inventory Information
366
References
366
Mitigating the Adverse Impact of Strategic Waiting in Dynamic Pricing Settings: A Study of Two Sales Mechanisms
368
13.1 Introduction
368
13.2 Model Preliminaries
370
13.3 Two Inventory Display Formats
371
13.4 Two Operating Regimes
379
13.5 Conclusions
384
References
384
The Impact of Strategic Consumer Behavior on the Value of Operational Flexibility
386
14.1 Introduction
387
14.2 Modeling Traditional and Flexible Production
388
14.3 Modeling Strategic Consumer Purchasing
390
14.4 Equilibrium Analysis
393
14.5 The Value of Flexibility
397
14.6 Extensions and Complications
405
14.7 Conclusions
409
References
409
Capacity Rationing with Strategic Customers
411
15.1 Introduction
412
15.2 Capacity Rationing Under Rational Expectations
414
15.3 Capacity Rationing When Customers Learn
423
15.4 Relation to Rational Expectation Equilibrium
431
15.5 Conclusions
432
References
433
Pricing Strategies for Managing Rational/ Strategic Consumer Behavior
434
Shaping Consumer Demand Through the Use of Contingent Pricing
435
16.1 Introduction
435
16.2 Contingent Pricing
437
16.3 Contingent Pricing with Strategic Consumers
438
16.4 Conclusion
444
Appendix
445
References
446
Strategic Consumer Response to Dynamic Pricing of Perishable Products
447
17.1 Introduction
447
17.2 Literature Review
449
17.3 Strategic Consumer Behavior
451
17.4 Simulation Results
456
17.5 Extensions
461
17.6 Conclusions and Future Research
464
Appendix
465
References
469
Strategic Behavior in Supply Chains: Information Acquisition
471
18.1 Introduction
472
18.2 Motivating Example: Costume Gallery
473
18.3 Literature Review
476
18.4 Independent Retailers and Products
477
18.5 Advance Purchase Discounts: Risk Sharing and Supply Chain Performance
482
18.6 Application at Costume Gallery
484
18.7 Conclusions and FutureWork
488
References
488
Index
490
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