DYNAMIC PRICING MODEL OF MONOPOLISTIC MANUFACTURE BASED ON THE AFTER-SALE SERVICE

Yulan Zhou

School of Economy & Management, Southwest Petroleum University, No.8, Xin Du Road, Chengdu, Sichuan, China

Dynamic pricing is concerned by business and academia as a pricing method, and has also made extensive research in this field. But the dynamic pricing theory with multi period is not mature considering monopolistic environment and after-sale service of manufacture. Because consumer not only pays attention to the product itself, but more emphasis on after-sale service of product with the changes of consumption concept and increasingly fierce market competition. Therefore good after-sale service is an important reason for consumers to purchase repetitively, which has become the key to the success of manufacture. This paper puts forward to the demand function with learning character, and constructs the multi-period dynamic pricing model on account of monopolistic manufacture and after-sale service level. Then it has important theoretical and practical significance when the conclusions are applied to the monopolistic manufacture. The research findings show the product price of manufacture fluctuates with oscillation both in the short and long term. But it is gradually reduced to a constant value for the magnitude or extent of the price oscillation with certain rate convergence in the long term. Finally, the price may tend to consumer's reservation price or unit operating cost of manufacture.