Advanced Search
MyIDEAS: Login

From complexities to the rules of thumb: towards optimisation in pricing decisions

Contents:

Author Info

  • Erkki K. Laitinen
Registered author(s):

    Abstract

    This study is arguing that management would benefit in pricing decision from simple rules of thumb more than from complicated models. These rules are easy to use and they provide management with useful support to move towards optimisation and to diminish gap between theory and practice. This paper presents three kinds of rules for pricing decision dealing with multi-product pricing, dynamic pricing and pricing objective function. The rules are adjusted versions of the Amoroso-Robinson rule. The paper also presents survey evidence on pricing decisions in Finnish firms. This evidence is based on a questionnaire responded by 205 firms. Finnish firms tend to use cost-plus pricing and are largely full-cost adopters although many of them report maximising objectives for pricing. Evidence shows that the firms are able and motivated to apply analytical methods for pricing. However, only 22% of the firms have adopted optimisation models in pricing decisions.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.inderscience.com/link.php?id=26197
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Applied Management Science.

    Volume (Year): 1 (2009)
    Issue (Month): 4 ()
    Pages: 340-366

    as in new window
    Handle: RePEc:ids:injams:v:1:y:2009:i:4:p:340-366

    Contact details of provider:
    Web page: http://www.inderscience.com/browse/index.php?journalID=286

    Related research

    Keywords: pricing decisions; optimisation; several products; dynamic pricing; objective function; pricing survey; Finnish firms; decision making; Finland; rules of thumb; multi-product pricing.;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ids:injams:v:1:y:2009:i:4:p:340-366. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.