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Chinese Journal of Management Science ›› 2026, Vol. 34 ›› Issue (11): 142-150.doi: 10.16381/j.cnki.issn1003-207x.2025.0349

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Pricing Model Selection for Software Firms under Consumer Anticipated Regret

Xing Gao1(), Shihui Gu1, Boyuan Zhong2   

  1. 1.School of Economics and Management,Southeast University,Nanjing 211189,China
    2.School of Management,Nanjing University of Posts and Telecommunications,Nanjing 210003,China
  • Received:2025-03-04 Revised:2025-06-14 Online:2026-11-25 Published:2026-11-10
  • Contact: Xing Gao E-mail:emgx@seu.edu.cn

Abstract:

Software products are typically marketed through either one-time sales or subscription-based leasing, and the choice between these distribution models is profoundly influenced by consumer behavioral characteristics. Consumers often face significant perceived uncertainty about a software product’s ability to deliver its expected utility. This uncertainty inherently creates a risk of product-consumer mismatch, which readily triggers anticipatory regret. Consequently, such anticipated regret profoundly influences consumers’ purchase decisions.​ The theory of anticipated regret offers a behavioral lens to understand how pre-purchase expectations of negative outcomes influence choices. Accordingly, both value uncertainty in software products and the psychological aspect of consumer anticipated regret are incorporated. A two-stage game-theoretic model is developed to examine the optimal sales strategy under both one-time sales and leasing models. Key findings include: (1) As regret aversion sensitivity increases, total corporate profit declines under both sales models; conversely, as matching probability rises, profits increase under both models. (2) Higher matching probability inclines firms toward the leasing model, whereas increased regret aversion sensitivity favors the sales model. (3) Under dual influences of uncertainty and anticipated regret, both consumer surplus and social welfare are higher under the sales model than under the leasing model. These findings provide practical insights for software firms seeking to optimize their sales mode selection in response to consumer anticipated regret and matching risk.

Key words: selling and leasing, anticipatory regret, product matching, pricing strategy

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