Volume : 3, Issue : 6, June - 2014

The Study of Direct Selling Management Strategies and Consumer Behavior an Example of the Companies in India

Manish Singh Sengar, Dr. Piyush Kant Srivastava, Rajesh Dubey

Abstract :

Companies in a variety of industries often use sales& selling to dispose of unsold capacity. Although this may generate incremental in a short term,the long–term consequences of such a strategy are not immediately obvious: more discountedlast–minute tickets may lead to more consumers anticipating the discount and delaying thepurchase rather than buying at the regular (higher) prices, and hence potentially reducingrevenues for the company. To mitigate such behavior, many service providers have turned toopaque intermediaries such as hotwire.com that hide many descriptive attributes of the service so that the buyer cannot fully predict the ultimateservice provider. Using a stylized economic model, this paper attempts to explain and comparethe benefits of last–minute sales directly to consumers vs. through an opaque intermediary