PRICE SKIMMING STRATEGY FOR NEW PRODUCT DEVELOPMENT

Hassan Shavandi, Ata G. Zare

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.

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Paper Citation


in Harvard Style

Shavandi H. and G. Zare A. (2012). PRICE SKIMMING STRATEGY FOR NEW PRODUCT DEVELOPMENT . In Proceedings of the 1st International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES, ISBN 978-989-8425-97-3, pages 108-113. DOI: 10.5220/0003705301080113


in Bibtex Style

@conference{icores12,
author={Hassan Shavandi and Ata G. Zare},
title={PRICE SKIMMING STRATEGY FOR NEW PRODUCT DEVELOPMENT},
booktitle={Proceedings of the 1st International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,},
year={2012},
pages={108-113},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0003705301080113},
isbn={978-989-8425-97-3},
}


in EndNote Style

TY - CONF
JO - Proceedings of the 1st International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,
TI - PRICE SKIMMING STRATEGY FOR NEW PRODUCT DEVELOPMENT
SN - 978-989-8425-97-3
AU - Shavandi H.
AU - G. Zare A.
PY - 2012
SP - 108
EP - 113
DO - 10.5220/0003705301080113