Quality design and quick response in the presence of myopic and strategic consumers
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    Abstract:

    Strategic consumers will look forward to buying fashionable or perishable products at lower prices.Researches show that strategies such as improving product quality and quick response to the market demand can induce strategic consumers to buy earlier,but what's the relationship between quality design and quick response? We categorize the strategies into four classes,different from each other in two dimensions: consumer type and ordering policy. It is found that if consumers are strategic,quality design and quick response can provide enormous additional benefits than when consumers are myopic; when consumers are myopic,quick response should be cooperated with higher quality,while if consumers are strategic,quick response should be combined with lower quality.

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  • Online: April 17,2018
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