Optimal pricing model: Case of study for convenience stores Chapter in Scopus uri icon

abstract

  • © Springer International Publishing AG 2017. Pricing is one of the most vital and highly demanded component in the mix of marketing along with the Product, Place and Promotion. An organization can adopt a number of pricing strategies, which usually will be based on corporate objectives. The purpose of this paper is to propose a methodology to define an optimal pricing strategy for convenience stores. The solution approach involves a multiple linear regression as well as a linear programming optimization model. To prove the value of the proposed methodology a pilot was performed for selected stores. Results show the value of the solution methodology. This model provides an innovative solution that allows the decision maker include business rules of their particular environment in order to define a price strategy that meet the objective business goals.

publication date

  • January 1, 2017