Choosing the Customer Signal for Personalized Dynamic Pricing of Limited Inventories
نویسنده
چکیده
We consider a firm which sells a product with a limited inventory over a finite sales horizon. In addition to the inventory level and time, the firm also sets its prices based on customer signals, which are quantified scores of relevant information about the customers and are correlated with customers’ reservation prices. We investigate the properties of “ideal” customer signals, i.e., signals that lead to simple, easy-to-implement policies, and higher expected profits.
منابع مشابه
Personalized Dynamic Pricing of Limited Inventories
Prior work has investigated time and inventory-level dependent pricing of limited inventories with finite selling horizons. We consider a third dimension in addition to time and inventory level that the firms can use in setting their prices: the information that the firm has at the individual customer level. An arriving customer provides a signal to the firm, which is an imperfect indicator of ...
متن کاملDynamic Pricing with Periodic Review and a Finite set of Prices with Cancellation
In this paper, three dynamic pricing models are developed and analyzed. We assume a limited number of a particular asset is offered for sale over a period of time. This asset is perishable and can be an inventory or a manufacturing capacity. During each period, the seller sets a price for this asset. This price is selected from a predetermined discrete set. The maximum amount which a customer i...
متن کاملDynamic pricing of electricity in retail markets
This paper aims at defining a dynamic and flexible tariff structure for a distribution company that protects the retail consumers against the excessive fluctuations of the wholesales market prices. We propose a two-stage pricing scheme that sets in a first-stage a time-of-use tariff that is corrected later by a dynamic component once the real-time demand has been observed. A personalized tariff...
متن کاملThe Value of Personalized Pricing
Increased availability of high-quality customer information has fueled interest personalized pricing strategies, i.e., strategies that predict an individual customer’s valuation for a product and then o↵er a customized price tailored to that customer. While the appeal of personalized pricing is clear, it may also incur large costs in the form of market research, investment in information techno...
متن کاملA Multi-Objective Fuzzy Approach to Closed-Loop Supply Chain Network Design with Regard to Dynamic Pricing
During the last decade, reverse logistics networks received a considerable attention due to economic importance and environmental regulations and customer awareness. Integration of leading and reverse logistics networks during logistical network design is one of the most important factors in supply chain. In this research, an Integer Linear Programming model is presented to design a multi-layer...
متن کامل