Dealer’s Ordering Decision Behavior under Different Price Strategies: An Analysis Based on the Modern Behavioral Decision Theory

Abstract

The modern behavioral decision theory considers that the decision subject is often in a state of bounded rationality rather than absolute rationality. From the perspective of decision behavior, this thesis based on the prospect theory deeply parses dealer’s ordering decision behavior in response to different price strategies under the random market demand, reveals the intrinsic mechanism of dealer’s ordering decision behavior in response to business price strategy, analyzes the non-pricing factors impacting dealer’s ordering decision under the price strategy, and proposes the countermoves and suggestions for enterprise in terms of business price strategy, product strategy, relationship marketing and other aspects, which will be of some references to guide the application of business price strategy and channel management practices.