Abstract:The retailer's stocking model in the presence of heterogeneous strategy consumers is studied by using the two-stage decision-making method based on target consumer orientation. Assuming that the heterogeneous strategic consumers' valuation is stochastic, some conclusions are obtained through solving and simulating the stocking model, such as 1) the consumers' average willingness to pay has an impact on the range of retailer' target consumers, 2) the quantity of target consumers is positively affected by the consumers' average willingness to pay and the clearance price, and is negatively affected by the degree of consumer heterogeneity and the product cost, 3) when the consumers' average willingness to pay is small or heterogeneity is large, the retailer can earn more profit comparing to the circumstance where the consumers are homogeneous. The consumers' heterogeneity is beneficial to the retailer.