Advances in Economics, Management and Political Sciences

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Proceedings of the 2nd International Conference on Business and Policy Studies

Series Vol. 10 , 13 September 2023


Open Access | Article

The Influences of Pricing Based on Consumer Preference---Taking the ‘Hype Shoes’ Phenomenon as an Example

Xuncheng Wang * 1
1 Nanjing Audit University

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 10, 64-69
Published 13 September 2023. © 13 September 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Xuncheng Wang. The Influences of Pricing Based on Consumer Preference---Taking the ‘Hype Shoes’ Phenomenon as an Example. AEMPS (2023) Vol. 10: 64-69. DOI: 10.54254/2754-1169/10/20230429.

Abstract

In recent years, the phenomenon of “hype shoes” has attracted more and more attention. The “hype shoes” uses consumer preferences to make special pricing and make money on the price difference. To understand how consumer preferences influence pricing strategy, many studies have dissected consumer preferences from the producer’s perspective. In this paper, we analyzed whether a firm’s pricing strategy is reasonable from an economic perspective, and also clarify the importance of consumer preferences in business competition. There are many economic principles behind this phenomenon and it is worth reflecting on them. Studies have found that consumers’ age, gender, occupation and even body size can be used as pricing factors by businesses. Therefore, once a company has more information about a consumer, it can provide personalized services to the consumer, and on the other hand it may use big data discriminatory pricing (BDDP) to earn more money. Through the analysis of the “hype shoes” phenomenon, businesses should learn to correctly grasp consumer preferences and then raise pricing appropriately based on cost. Finally, businesses should know how to properly invest in market research to obtain more consumer data and ultimately adopt a successful pricing strategy.

Keywords

preferences, economic principles, market research

References

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2. Gârleanu, Nicolae., Heje Pedersen, Lasse., M. Poteshman, Allen.: Demand-Based Option Pricing. The Review of Financial Studies 22(10), 4259-4299 (2009).

3. Huiyuan, Ren.: Sensitive consumer demand requires prudent business strategies, Economic and Management Science 12(5), 43-44 (2020).

4. Ishikawa, Tetsuya., Robertson, Scott.: Optimal investment and pricing in the presence of defaults. Mathematical Finance 30(2), 577-620 (2020).

5. Xiuyun,Yang., Genfu, Feng.: Demand differential pricing in the civil aviation industry: characteristics and application, Economic Science 25(5), 43-52 (2003).

6. McKinsey & Company, https://www.mckinsey.com/featured-insights/china/, last accessed 2019/12/18

7. Alex, Jung.: Drug Pricing and Oncology: What’s Really Driving Costs. JCO Oncology Practice 16(5), 270-272 (2020).

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2nd International Conference on Business and Policy Studies
ISBN (Print)
978-1-915371-47-8
ISBN (Online)
978-1-915371-48-5
Published Date
13 September 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/10/20230429
Copyright
13 September 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated