Loading...
Search for:
heterogeneous-markets
0.006 seconds
Impact of Market Heterogeneity on Location and Pricing
, Ph.D. Dissertation Sharif University of Technology ; Shavandi, Hassan (Supervisor) ; Abouee-Mehrizi, Hossein (Supervisor)
Abstract
Market heterogeneity is an essential element in the strategic decision making of firms. Today, differences in urban structures, product varieties, and information availability have created new heterogeneities that deviate from the ones in the classic literature of marketing and industrial organization. Thus a new perspective is needed for analyzing the firms' decisions in these markets. In this thesis, we study the effect of heterogeneous markets on the pricing, location, quality, and product line introduction strategy of a firm to find the optimal reaction of a firm entering these markets. In this regard, we first assume that consumers are not only located at different places in the market...
Joint pricing and location decisions in a heterogeneous market
, Article European Journal of Operational Research ; Volume 261, Issue 1 , 2017 , Pages 234-246 ; 03772217 (ISSN) ; Shavandi, H ; Abouee Mehrizi, H ; Sharif University of Technology
Abstract
In this paper we consider the problem of joint location and pricing optimization for a firm in a heterogeneous market producing a single product. We assume that customers have a different willingness to pay for the product. We consider two classes of customers who are not uniformly distributed in the market and develop an analytical framework to determine the relationship between the optimal price and location of the firm. We demonstrate that the optimal price and location are closely related to each other, and thus there is a need for simultaneous optimization of the price and location. We provide both analytical and numerical results to illustrate the impact of transportation cost and the...