Advance Selling Strategy with Return Service: The Impacts of Information Disclosure and Disclosure Methods

• DOI: 10.1142/s0217595924400098
• Publication Date: 2024-04-26T06:29:02Z
• Authors: Yajing Wang; Jian Li; Shichao Zhu; Pei Quan
• Keywords: Full disclosure

The return cost burdens both consumers and merchants, leading merchants to emphasize information disclosure during pre-sales of new products. This study analyzes the effects methods on consumer valuation merchants’ pre-sale strategies across four scenarios: no advance selling, disclosure, traditional blockchain-enabled disclosure. We examine optimal pricing inventory under each scenario, assessing value merchant’s selling strategy. find that could lead various outcomes based distribution bounds, trust levels, merchant losses. Blockchain-based influences implement premium pricing, which may render blockchain unnecessary. Offering pre-orders is beneficial with any method. If have varied product understandings, benefit more from using an strategy rather than just offering returns; otherwise, reverse true. paper provides theoretical insights into practices.