New Product Presale Strategies considering Consumers’ Loss Aversion in the E-Commerce Supply Chain

Table 1

Summary of notations.

Variables
	Percentage of the market price to be charged to presale
	The quantity of products that the supplier should prepare for demands that will come in the selling season
	The sales service level of the e-commerce platform
	Number of consumers who place preorders in the advance selling period, a random variable with a mean and standard deviation
	Number of consumers who buy in the selling season, a random variable with a mean and standard deviation
	Number of potential type consumers, a random variable with a normal distribution
Parameters
	Market price per unit of product sold in the selling season
	Production cost per unit of product
	Salvage price per unit of product
	The elasticity coefficient of the platform’s service level
	Loss averse index to indicate how averse a consumer is to the possibility of realizing negative surplus
	The correlation coefficient between the random variables and
	The service cost parameter
	The rate of commission for e-commerce platform per unit of the new product
	The consumers’ valuation of the new product
	The consumers’ expected utility of the new product