Choice of Revenue Management Strategies with Stochastic Demand and Strategic Customers

Abstract

Probabilistic product is a new revenue management tools appearing on the market in recent years. This article will define a special type of a product and services for probabilistic products to analyze a novel marketing strategy – probabilistic selling. In this probabilistic sales strategy, sales are a multi-product use of existing these different products or services, we can provide this additional consumer products as a purchase option. This paper is based on the Hotelling model, setting the market consumers are bounded rationality strategy type consumers, fixed first discuss the market demand, the traditional sales model and probabilistic sales model for comparison. We concluded, probabilistic product marketing at moderate differences, and consumer preferences intensity is large can best embody its profit advantage.