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Industrial Engineering National Taiwan University


Operations/Revenue Management

Adoption of Sales Strategies and Pricing

As the innovation of information technology of e-commerce (e.g., big data, cloud computing), several new business models or sales strategies are developed, which arise opportunity and challenge in pricing and sales strategies for the sellers. For example, cross selling becomes easier due to the availability of customer preference, or customized bundling is feasible because of transparency of consumer behavior. On the other hand, the product life cycle becomes shorter, the sellers require to adopt various sales formats to grasp the market and to use pricing strategies to raise the revenue. We are expected to explore the study of pricing strategy combined with the sales formats, and to obtain the managerial insights in the field of operation management.


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  • A retailer can sell a product by offering pre-order in advance selling period. After observing the per-order sales, the retailer can adjust the order quality and even pricing strategy in the spot period. We investigate how the pre-order is reflected in the pricing and the product demand.
  • We also focus on the adoption of the sales formats in the spot selling period. In the case, a retailer sells two products to two segments, and these two products are complementary. The retailers can sell the products separately, group the two products as a bundle, or use the cross selling. The best adoption of sales formats is derived for various scenarios.
  • In addition to offering the product pre-order to gather the demand information, in the spot selling period, the retailer may adopt bundling or cross selling to promote the sales of the product with integrating the pricing and production decisions.


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