# 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.

#### References

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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