Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
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A Dynamic Pricing Model with a Multiplicative Functional Form

승산적 형태를 가진 동태적 가격결정 모형

  • Published : 2006.09.01
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Abstract

Brand Pricing is the most important issue for the brand manager in the dynamic market. in the typical dynamic pricing model, a linear function has been used based on the assumption that the non-Price Influences and the price influences were independent. However, to incorporate the characteristics of the dynamic market, it is natural to consider the multiplicative relationship. We are going to try the multiplicative linkage between the non-price Influences and the price influences and suggest a new dynamic pricing model with e multiplicative functional form. An empirical study of 19 brands in the Korean cigarette market shows the feasibility of the suggested model.

Keywords

References

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