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Price skimming strategy for new product development
Shavandi, H ; Sharif University of Technology | 2012
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- Type of Document: Article
- Publisher: 2012
- Abstract:
- This article presents a new model for pricing a new product considering skimming pricing strategy in the presence of the competition. We consider two periods for price setting including skimming and economy period. The problem is deciding on a skimming price as well as an economy price in order to maximize the total profit. The derived model is a non-linear programming model and we analyzed the structure and properties of optimal solution to develop a solution method. Analytical results as well as managerial insights are presented by mathematical analysis and numerical analysis
- Keywords:
- New product development ; Non-linear programming ; Skimming pricing ; Analytical results ; Mathematical analysis ; New model ; New product ; New product development ; Optimal solutions ; Price setting ; Pricing strategy ; Solution methods ; Structure and properties ; Computer programming ; Economics ; Product development ; Profitability ; Costs
- Source: ICORES 2012 - Proceedings of the 1st International Conference on Operations Research and Enterprise Systems ; 2012 , Pages 108-113 ; 9789898425973 (ISBN)
- URL: http://www.scitepress.org/DigitalLibrary/PublicationsDetail.aspx?ID=8UjgO66fV4A=&t=1