Product Pricing in the e-Business Era

Product pricing has slowly evolved from pure intuition-based decisions to a mix of art and science. This is due in no small part to the availability of historical sales and other data which are now routinely collected by enterprise information systems. We review recent trends in pricing products in the retail (business to consumers) and wholesale (business to business) industries and elaborate on factors that lead to such trends. The research literature on approaches to help price a product is examined. We also introduce common concepts behind commercially available software systems that provide pricing decision support, and discuss the business benefits of using such a system.

By: Aliza Heching, Ying Tat Leung

Published in: RC22986 in 2003


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