Dynamic Pricing of Perishable Products Considering the Advertisement

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Aslani, Shirin | 2009

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 39800 (01)
University: Sharif University of Technology
Department: Industrial Engineering
Advisor(s): Modarres, Mohammad
Abstract:
Seasonal Products are a group of products with a limited life time. If seasonal products are not sold during a specified time, they have to be sold at a salvage price which is close to zero. Although one can find many studies in the literature regarding pricing of this type of products in order to maximize the profit, none of them have considered the simultaneous effect of both advertising and pricing. The objective of this paper is to introduce an integrated model of dynamic pricing and advertising for seasonal products. The advertisement is classified into two main categories; to advertise a specific type of product and to advertise the brand of the company. To obtain the mentioned goal, an integrated dynamic pricing model is developed; but considering the complexity of the model and the magnitude of parameters, another method is developed in next step which can be considered as hieratical approach and is capable to handle the real world problems. It solves separate dynamic pricing models iteratively. Finally, to illustrate the accuracy of the results, the developed method is simulated using computer program.
Keywords:
Dynamic Pricing ; Revenue Management ; Advertisement ; Sales Promotion ; Perishable Products