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COVID-19 challenge: optimizing investment in service and promotional effort with pricing strategy for sustainability in new normal

Author

Listed:
  • Rini

    (Lal Bahadur Shastri Institute of Management)

  • Priyamvada

    (Government Polytechnic)

Abstract

The COVID-19 pandemic has had a significant global impact on supply chains, resulting in economic shocks that have affected businesses in various industries. The implementation of total lockdown measures in many countries has posed a major setback and challenge for organizations. At the same time, ensuring the continued supply of essential materials without disruption has been a daunting task. As a result, supply chain retailers have had to make extra efforts in terms of sourcing and maintaining the flow of products to customers. In this context, offering home delivery of essential items with proper sanitization and precautionary measures can be an effective way to deal with the economic crisis. However, creating awareness about the availability of such services and ensuring no-contact delivery is crucial for effectiveness. The proposed framework examines the impact of investing in extended services and promotional efforts on sales. By providing numerical examples and sensitivity analysis, the framework generates useful insights that can assist in better management during and after the crisis. The results obtained from the sensitivity analysis provide a clear indication of how different parameters affect the retailer's selling price and total profit in numerical terms. The results demonstrate that an agile system that can quickly transition to offering home delivery services, along with proper precautionary measures and advertising, can help retailers cope with the crisis profitably.

Suggested Citation

  • Rini & Priyamvada, 2023. "COVID-19 challenge: optimizing investment in service and promotional effort with pricing strategy for sustainability in new normal," OPSEARCH, Springer;Operational Research Society of India, vol. 60(3), pages 1218-1229, September.
    • Handle: RePEc:spr:opsear:v:60:y:2023:i:3:d:10.1007_s12597-023-00659-8
    DOI: 10.1007/s12597-023-00659-8
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    References listed on IDEAS

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