Dynamic pricing and return policy of perishable products considering consumer risk preference

• 1、Department of Industrial Engineering,College of Mechanical Engineering,Chongqing University，Chongqing 400044

Abstract：In this paper, the classical Stackelberg game model is established by considering the consumer risk preference behavior factor from the mixed consumers with short-sighted and strategic behavior coexisting, introducing of the differential return policy to ease the consumers\' strategic behavior. A comparative analysis of the difference between the return policy of the pricing and profit impact on firms. Research shows: consumer strategic behavior reduce price and the overall benefits of firm. It has negative impact on firm. While risk-loving behavior reinforces the adverse effects and risk aversion behavior weakening the adverse effects. and the inventory and product valuation variants reinforce the impact of consumer\'s strategic behavior and risk preference on the firm. Assuming that all of the market is short-sighted consumers, risk preference, valuation variants and inventory have no effect on pricing and profitability of firm. There is risk of differential return policy. Only when the strategic consumer and inventory situation reached a critical point, the return policy will bring more benefits for the firms, otherwise the firms will suffer losses.

Keywords： dynamic pricing risk preference mixed consumers differential return policy