📄 Abstract
This study examines how consumers trade off pricing rule, price, product quality and durability, brand reputation, shopping experience, and consumption emotion when choosing fast-fashion and accessible-luxury products. A discrete choice experiment generated 2,051 valid choice sets from 293 respondents after structured quality screening. Context-specific conditional logit models, willingness-to-pay estimates, a panel latent-class logit model, and a finite short-run revenue-index counterfactual were applied. Inventory-based markdowns increased utility in fast fashion (β = 0.414, p = .013) but reduced utility in accessible luxury (β = -0.582, p < .001), whereas demand-responsive pricing was negative but not statistically significant in either aggregate context. The two non-static mechanisms are interpreted separately: demand-responsive pricing represents adaptive repricing, while inventory markdown is a stock-contingent retail rule that may also be perceived as conventional clearance. The high quality/durability level produced the largest functional premium, while exclusive shopping and distinctive consumption emotions were especially valuable in luxury. A two-class model was retained because it achieved the lowest Bayesian information criterion and yielded behaviourally coherent, but probabilistic, segments: price-functional pragmatists (53.0%) and brand-experiential seekers (47.0%). Within the tested price-mechanism grid, inventory markdown produced the highest one-period revenue index for a representative fast-fashion profile, whereas static pricing dominated for a prestige-oriented luxury profile. These revenue comparisons do not model strategic waiting or long-run brand effects. The findings therefore support mechanism-category congruence rather than a category-neutral prescription for dynamic pricing.
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📚 How to Cite:
Phuong Thao NGUYEN, Quynh Anh VU , CONSUMER CHOICE UNDER DYNAMIC PRICING: LATENT-CLASS EVIDENCE FROM FAST FASHION AND ACCESSIBLE LUXURY , Volume 14 , Issue 8, August 2026, EPRA International Journal of Economic and Business Review(JEBR) , Pages: 34 - 39 , DOI: https://doi.org/10.36713/epra31378