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Analyzing the price skimming strategy for new product pricing

Shavandi, H ; Sharif University of Technology | 2013

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  1. Type of Document: Article
  2. Publisher: Sharif University of Technology , 2013
  3. Abstract:
  4. This article presents a new model for pricing a new product considering a skimming pricing strategy in the presence of competition. We consider two periods for price setting, including skimming and an economy period. The problem is to decide on skimming as well as economy price, in order to maximize total profit. The derived model is a non-linear programming model and we have analyzed the structure and properties of an optimal solution to develop a solution method. Analytical results, as well as managerial insights, are presented by mathematical and numerical analyses
  5. Keywords:
  6. Competition ; Economics ; Nonlinear programming ; Product development ; Analytical results ; New product development ; Optimal solutions ; Pricing policy ; Product pricing ; Skimming pricing ; Solution methods ; Structure and properties ; Costs ; Nonlinearity ; Numerical model ; Optimization ; Profitability ; Software
  7. Source: Scientia Iranica ; Volume 20, Issue 6 , 2013 , Pages 2099-2108 ; 10263098 (ISSN)
  8. URL: http://www.scientiairanica.com/fa/ManuscriptDetail?mid=90