Pricing
Source: https://bm.hkust.edu.hk/bizinsight/tag/pricing Parent: https://bm.hkust.edu.hk/bizinsight/digital-platform-design-and-strategy
WU, Chenguang (Allen)
CHEN, Jin
Managing Customer Search through Product Bundling
Customers often search for information on products before making their purchase decisions. With the emergence of online review platforms, this has become quicker and easier than ever, such that companies must manage customer search to attract and retain customers. How might the common marketing strategy of bundling—where multiple goods or services are sold ... Read More
[ BizBites ]
WU, Chenguang (Allen)
CHEN, Jin
Managing Customer Search through Product Bundling
Customers often search for information on products before making their purchase decisions. With the emergence of online review platforms, this has become quicker and easier than ever, such that companies must manage customer search to attract and retain customers. How might the common marketing strategy of bundling—where multiple goods or services are sold ... Read More
[ BizStudies ]
VACCARI, Stefano
ZEEVI, Assaf
How Online Reviews Affect Dynamic Pricing Strategies
Online product review platforms have become popular places for consumers to share their opinions on and experiences of the products and services they buy. In online marketplaces, the quality of a new product or service is initially unknown, but reviews posted by buyers inform subsequent customers. By reducing uncertainty about product quality, this type of ... Read More
[ BizStudies ] [ Digital Platform: Design and Strategy ]
Stock Surprises—The Impact of Interest Rate Fluctuations on Stock Prices
The interest rate charged on business loans, known as the discount rate, affects stock prices. This is particularly important, given the fast rate increases by the Federal Reserve this year. However, traditional methods of calculating its impact are not sophisticated enough, according to HKUST’s Zhanhui Chen. To address this limitation, the researcher ... Read More
[ BizStudies ]
ZHENG, Rui
SHOU, Biying
Peers and trend-setters have a powerful say in what products we decide to buy, particularly on online social media platforms. Naturally, this means that firms must consider the influence of network connections on purchase behaviors when designing pricing strategies. In doing so, they must consider when consumers decide to buy a new product—some consumers ... Read More
[ BizStudies ]
ZHENG, Rui
SHOU, Biying
Peers and trend-setters have a powerful say in what products we decide to buy, particularly on online social media platforms. Naturally, this means that firms must consider the influence of network connections on purchase behaviors when designing pricing strategies. In doing so, they must consider when consumers decide to buy a new product—some consumers ... Read More
[ BizBites ]
DOU, Winston Wei
Competition, Profitability, and Discount Rates
Lowering prices and offering discounts might be a sure-fire way for firms to attract consumers, but these tactics also cause huge fluctuations in competition intensity, with potentially serious implications for asset prices and returns. Surprisingly, however, this key issue has been neglected in asset pricing research. In a pioneering study, HKUST’s ... Read More
[ BizStudies ]
ZHANG, Yang
Social networks are a good example of the complexity of human relationships, where a person’s daily life decisions are regularly affected by the choices of their friends. This challenges extensive research on the economics of networks, in which individual activities have global impacts on the activities of others. In short, the externalities of network ... Read More
[ BizStudies ]
In the past few years, a number of digital and media platforms, e.g., YouTube and Spotify, have begun introducing premium services which let paid subscribers see fewer or no adverts. Such a practice seems to be a classic case of second-degree price discrimination through ‘versioning’, which allows consumers to self-select different models of the same product ... Read More
[ BizStudies ]
When and How to Offer Free Products
Despite its immense popularity, the freemium business model remains a complex strategy to master and often a topic of heated debate. In this research, we ask when and why a firm should offer a zero price on its low-end product when users’ product usages generate network effects on each other. Without network effects, freemium never emerges as optimal, and the ... Read More
[ BizTalks ]