A nonlinear mathematical model for optimal discount pricing strategies to maximise the stakeholders-perceived value: mapping in Taguchi loss function concept

Customer-perceived value (CPV) is the difference between the prospective customer's evaluation of all the benefits and costs of an offering and the perceived alternatives. In this paper, we introduce a new nonlinear mathematical model for developing optimal discount pricing strategies using the Taguchi loss function and the concept of customer lifetime value (CLV). model aims to maximise the stakeholders-perceived value (SPV), which is calculated based on the customer's mentality towards the price before making a purchase decision. If the customer's mentality is greater than the amount paid, the perceived value for the chain store is used as the basis for SPV calculation; otherwise, the perceived value for customers is used. application of our model shown in a chain store. Using Taguchi pricing and discount model, managers can calculate product portfolio discounts and adjust their marketing strategies according to the specific strategies of the store and product portfolio for customer segments.