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Revenue management in product and service innovations
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Zheng, Yijun (2020) Revenue management in product and service innovations. PhD thesis, University of Warwick.
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Official URL: http://webcat.warwick.ac.uk/record=b3678053
Abstract
This thesis is concerned with revenue management problems related with innovative products and services in two merging business sectors: attended home delivery services and airline upgrading system. The attended home delivery service is a fulfilment method offered by e-retailers; and the airline upgrading system is used to resolve demand-capacity mismatch in business and economy cabins. In the first research topic, we define the concept of flexible time slots as any fixed combinations of regular delivery time slots. In exchange for cheap delivery charges, the customer is informed shortly prior to the delivery day in which regular time window the goods arrive. We evaluate the benefit of introducing flexible time slots in terms of increasing total profit and improving delivery efficiency by deriving a dynamic pricing policy. In practice, e-retailers present delivery time slots across multiple days to customers. Different models can be adopted to capture the customer selection behaviour depending on whether the model considers the substitutional effect of delivery days on customer choice decision. We investigate the effect of embedding different choice models within a dynamic slotting policy on the e-retailer's profit in the second research topic. Our third research topic discusses airlines' capacity allocation problem with upgrade options involving multiple flights. Within upgrade options, airlines can postpone upgrade decisions until demand is fully realised and customers only need to pay once their options are executed. However, customers may anticipate the availability of upgrade options based on their past experience and using them to obtain business capacity. Therefore, we address the importance of correctly accounting customer anticipation in managing the capacity in economy and business cabins in the long term.
Those problems are challenging as they all involve real-time decision making under a stochastic customer arrival process and the uncertainty from customer choice behaviour. Solving these problems involves modelling customer choice behaviour, forecasting demand, estimating displacement costs and considering constraints imposed by innovative business models. Moreover, efficient solution methods are required to make decisions in real time. In this thesis, we make contributions to the literature by formulating those problems using DP models and proposing effective choice-based pricing and capacity control policies that can be solved quickly. We also address practical issues and derive managerial insights on those innovative products and services by applying these policies in simulation studies.
Item Type: | Thesis (PhD) | ||||
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Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce |
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Library of Congress Subject Headings (LCSH): | Revenue management, Electronic commerce, Delivery of goods, Airlines -- Economic aspects, Consumer behavior | ||||
Official Date: | June 2020 | ||||
Dates: |
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Institution: | University of Warwick | ||||
Theses Department: | Warwick Business School | ||||
Thesis Type: | PhD | ||||
Publication Status: | Unpublished | ||||
Supervisor(s)/Advisor: | Gülpinar, Nalân ; Strauss, Arne | ||||
Format of File: | |||||
Extent: | ix, 133 leaves : illustrations | ||||
Language: | eng |
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