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Seminar
Department of Systems Engineering and Engineering Management
The Chinese
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Title |
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Advance Selling - The
Effects of Capacity and Customer Interdependent Valuations |
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Speaker |
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Prof. Man Yu |
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Department of Information Systems, Business Statistics and
Operations Management |
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HKUST |
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Date |
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Oct. 15th, 2010 (Friday) |
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4:30 p.m. - 5:30 p.m. |
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Venue |
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Room 404 |
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CUHK |
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Abstract:
Advance selling has been a standard marketing approach in selling many service and non-service products (such as books and popular electronic devices). The crux of advance selling is separating the time that customers purchase a product from the time that the product is consumed. Through advance selling, sellers offer customers an opportunity to purchase products early to get guaranteed availability at consumption time. On the other hand, customers need to decide whether to buy in advance or wait until spot, when it is very close to consumption time and the exact valuations of the product become known.Meanwhile, due to the nature of different products, customers' valuations at the consumption time can be highly independent (when personal factors dominate) or closely correlated (when common factors prevail), resulting in qualitatively different markets in spot. Our focus in this paper is to examine the effects of customer valuation interdependence and the seller's capacity on optimal advance selling strategies. We evaluate when and what type of advance selling (premium or discount advance price, the form of rationing) should be deployed in different environments. We show that both customer valuation interdependence and capacity play critical roles in advance selling. Our models and insights are well aligned with several examples in practice. |
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Biography:
Man Yu is an assistant professor in Department of Information Systems, Business Statistics and Operations Management at the HKUST business school. She received her PhD in Business Administration from Ross School of Business, management with explicit modeling of customer behavior, interfaces of operations and marketing, and supply chain management. |
************************* ALL ARE WELCOME ************************
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Host |
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Prof. Zhou Xiang, Sean |
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Tel |
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(852)2609-8336 |
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Enquiries |
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Prof. Nan Chen or Prof. Sean X. Zhou |
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Department of Systems Engineering and Engineering Management |
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CUHK |
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Website |
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