PRICE SKIMMING STRATEGY FOR NEW PRODUCT DEVELOPMENT

Hassan Shavandi; Ata G. Zare

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Paper

PRICE SKIMMING STRATEGY FOR NEW PRODUCT DEVELOPMENT

Topics: Industrial Engineering; Management Sciences; Mathematical Modeling

In Proceedings of the 1st International Conference on Operations Research and Enterprise Systems ICORES - Volume 1, 108-113, 2012 , Vilamoura, Algarve, Portugal

Authors: Hassan Shavandi and Ata G. Zare

Affiliation: Sharif University of Technology, Iran, Islamic Republic of

Keyword(s): Skimming pricing, Non-linear programming, New product development.

Related Ontology Subjects/Areas/Topics: Industrial Engineering ; Management Sciences ; Mathematical Modeling ; Methodologies and Technologies ; Operational Research

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 several formats:

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 - ICORES; ISBN 978-989-8425-97-3; ISSN 2184-4372, SciTePress, pages 108-113. DOI: 10.5220/0003705301080113

@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 - ICORES},
year={2012},
pages={108-113},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0003705301080113},
isbn={978-989-8425-97-3},
issn={2184-4372},
}

TY - CONF

JO - Proceedings of the 1st International Conference on Operations Research and Enterprise Systems - ICORES
TI - PRICE SKIMMING STRATEGY FOR NEW PRODUCT DEVELOPMENT
SN - 978-989-8425-97-3
IS - 2184-4372
AU - Shavandi, H.
AU - G. Zare, A.
PY - 2012
SP - 108
EP - 113
DO - 10.5220/0003705301080113
PB - SciTePress