• Journal of Korean Society of Industrial and Systems Engineering
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• v.34 no.2
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• pp.68-75
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• 2011

The purpose of this paper is to suggest a supplier and buyer's pricing decision strategy model with discount-policy over a long-term replenishment contract in a supply chain environment by small and medium size manufacturing company. We assume that the buyer has a superior economic power over a supplier and each agent in a supply chain is unaware of each other. The supplier proposes pricing decision strategy to induce the buyer to choose the terms of contract for the benefit of the supplier. Then buyer decides the terms of contract to maximize her profit considering supplier's discount-policy. We also present a numerical example to illustrate the efficiency of pricing decision strategy.

• Journal of Korean Institute of Industrial Engineers
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• v.35 no.2
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• pp.171-177
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• 2009

This study presents the switching strategy between admission control and pricing control policies and clarifies the properties of the switching strategy in an M/M/1/K queueing system. In addition, this study demonstrates that employing the switching strategy can significantly improve the maximum total expected profit.

• Korean Management Science Review
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• v.32 no.3
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• pp.55-70
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• 2015

The main objective of this study is to investigate the moderating roles of the competitor's pricing strategy and the degree of consumer's risk-aversion on perceived risk and perceived benefit in responding to price increases and package downsizing. Based on Prospect Theory, several prior researches find that consumers perceive increased price as more loss than package downsizing and perceive package downsizing as more benefit than increased price. We extend these behavioral economics approach using the reference effect of competitor's pricing strategy. We focus on consumer heterogeneity on risk-aversion, measure the degree of consumer's risk-aversion, and divide the consumers into two groups of high levels of risk-aversion vs. low levels of risk-aversion. We find that the firm's pricing strategies of both price increases and package downsizing do not significantly influence the perceived benefit for relatively low risk-aversion consumers. We find that when the firm reduce the package size, relatively high risk-aversion consumers perceived more benefit and had higher purchase intention compared to price increases. We also find that the competitor's pricing strategies do not significantly influence the consumer's response for relatively low risk-aversion consumers. For relatively high risk-aversion consumers, they perceived more loss when the firm has different pricing strategy from the competitor's.

• Journal of Distribution Science
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• v.17 no.6
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• pp.25-32
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• 2019

Purpose - Pricing strategy is a very effective marketing activity and has a significant impact on consumer purchasing decisions. Numerous studies have investigated the effects of various pricing strategies. However, tensile price claims have received little attention in the literature. It is thus necessary to investigate how different forms of tensile price claims affect consumer response. This study uses the consumer self-confidence level as a moderator of consumer behavior. Research Research design, data, and methodology - This study investigates the effect of four different tensile price claims (i.e., maximum discount, minimum discount, average discount, and range discount advertisements) on consumers' perceived savings. A survey was conducted to collect data for testing hypotheses. Results - The results show that consumers with high levels of self-confidence perceive more savings for maximum discount advertisements than minimum discount advertisements, for range discount advertisements than average discount advertisements. On the other hand, consumers with low self-confidence feel more perceived savings for average discount advertisements than range discount advertisement. Conclusions - The results of this study provide a new insight into the effectiveness of tensile pricing based on consumer self-confidence levels, which may provide valuable theoretical and practical applications.

• Korean Journal of Mathematics
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• v.13 no.1
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• pp.19-34
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• 2005

Pricing and hedging strategy for European options of jump-type asset models, which are derived from a stochastic differential equations, are discussed.

• Journal of Distribution Science
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• v.14 no.11
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• pp.49-60
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• 2016

Purpose - This paper presents how Multinational Enterprises (MNEs) operate in different tax jurisdiction could decide on its transfer pricing strategy as the optimal solution to increase their global after tax income through transfer pricing and solve their related transfer pricing issues related to distribution cost, consumer, and wholesale vendor. It has been strategy issues for an MNEs to locate its tax basis of wholesale vendor and buyer in a jurisdiction where effective rather low Research design, data, and methodology - The collection of information and data for this research project gathered from various sources of secondary data. The findings of these relevant research topic article and journal were the main source of references for this research project Results - The achievement of management's operational and financial objectives depends on transfer pricing policies availability that is consistent and supports both vendor, wholesaler, distributor and ensuring sufficient documentation and data is available to support the application and arriving at the arm length. Conclusions - The study concluded with an emphasis on the importance of web-designed information about international taxation rules and transfer pricing policy and pricing agreement among wholesale vendor and whole buyer around the world.

• Management & Information Systems Review
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• v.9
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• pp.65-80
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• 2002

As the growth of Internet business, many web sites have been developed their own Internet business strategies. Yet, many web sites have difficulties to make profit. In this paper, an economic model is developed to analyze web sites' quality and pricing strategies when they initiate their services as free services and develop advertising services and other charged services. By analyzing the economic model, optimal quality and prices was found. And by analyzing the optimal strategy, I found that web sites should properly decide their market share on initial customer. Finally, the importance of web sites' productivity to make profit is emphasized.

• Smart Media Journal
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• v.12 no.1
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• pp.54-61
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• 2023

Pricing, as one of the most important aspects of a business, should be taken seriously. Whatever affects a company's pricing system tends to affect its profits and losses as well. Currently, many manufacturing companies fix product prices manually by members of an organization's management team. However, due to the imperfect nature of humans, an extremely low or high price may be fixed, which is detrimental to the company in either case. This paper proposes the development of a fuzzy-based price expert system (Expert Fuzzy Price (EFP)) for manufacturing companies. This system will be able to recommend appropriate prices for products in manufacturing companies based on four major pricing strategic goals, namely: Product Demand, Price Skimming, Competition Price, and Target population.

• Management Science and Financial Engineering
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• v.11 no.3
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• pp.95-107
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• 2005

As online shopping malls have emerged as a substantial shopping channel, they have used various sales promotion strategies to acquire new customers. Most of these strategies have been applied by offline malls for years. One, loss-leader pricing, is a type of promotional pricing in which stores sell well known products below their marginal cost, in order to attract customers and induce them to purchase more goods through impulse buying. This strategy is based on the expectation that customers will factor transaction costs into their purchasing decisions. However, its application to online malls fails to recognize that transaction costs are lower online, and that customers will behave differently as a result. Our study predicts that loss-leader pricing will not work online because online malls entail lower searching and moving costs than offline malls The study examines the effectiveness of loss-leader pricing with empirical data from a survey as well as log data from a Korean online shopping mall. The results show that while loss-leader pricing does attract customers to online shopping malls, it encourages cherry-picking rather than impulse purchases of regular-price goods.

• Journal of Korean Society of Transportation
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• v.32 no.6
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• pp.675-685
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• 2014

This paper develops a differentiated pricing strategy over each segment of expressways based on the second-best pricing method for reducing congestion. To this end, a bi-level problem is proposed, in which the upper level of the model is formulated to determine toll level of each segment for minimizing traffic congestion, whereas the lower level of the model is formulated as a variable demand assignment problem. The sensitivity analysis based algorithm is took placed to find optimal solutions of upper level model. An application of the proposed model uses the modified Sioux-Falls network. The results show that the segment-based differentiated pricing strategy performs better than the existing uniform pricing strategy in reducing traffic congestion. This study can be applied as a demand management method to relieve disutility of excessively congested segments of expressways.