Optimized Pricing Model of New Product Based on the Probability of Demand

Pricing the new product was one of the most important strategic factors in its market diffusion process Probability of demand function described the Inherent relationship in the price of new product, the perceived price of customers and the purchase behaviors The optimal price from the profit function modified by the probability of demand reflected and effected exactly the market diffusion The result of analysis showed that appropriately low price motivated the imitative consumers' innovative purchase behaviors, and extended the potential market scale However, the extremely low price damaged the innovative consumers' purchase utility, furthermore, damaged the market diffusion Moreover, the perceived price of consumers increased if the public utility of new product Increased while the price was stable, which result in the accelerative process of market diffusion In conclusion, this probability of demand function was significant for the pricing and diffusion process of new product