Revenue Management in Subscription Environment with Limited Capacity and Horizon Considering Customer's Behavior

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Validi, Hamidreza | 2014

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 46407 (01)
University: Sharif University of Technology
Department: Industrial Engineering
Advisor(s): Shavandi, Hassan
Abstract:
Pricing and Revenue Management in systems that offer services in subscription as well as pay-per-use format simultaneously is one of the most significant challenges in service companies. One of the main criteria in these systems is keeping the loyal customers and attracting more subscribers. Pricing and capacity allocation are decisions to be made in such systems considering customer’s behavior. In this research, we consider a service system with subscription and pay per use options to analyze the price and capacity allocation based on customer’s bahvior. The Loss Aversion theory is assumed for customer’s behavior and its effect on decisions is analyzed. A greedy algorithm as well as a smart Genetic alhorithm are developed to solve the model. The performance of algorithms are reasonable based on experiments
Keywords:
Greedy Heuristics Algorithm ; Loss Aversion ; Capacity Allocation ; Pricing ; Revenue Management ; Finite Horizon ; Combined Subscription and Pay-Per-Use System ; Smart Genetic Algorithm

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