Revenue Management for Two Quality level Products
This paper considers the pricing strategy for two-qualitylevel of products in revenue management context. Since revenue management is a useful technique to maximize total revenue based on pricing differentiation and market segmentation, we present a simple single-period revenue pricing model for two-quality-level products to decide which combination of quality and price for every kind of products should be optimal to maximizing revenue. First, we formulate the probability model of selling based on prices and qualities to approximate customers demands. Then based on these probability models we establish a nonlinear programming model for maximizing total revenue. Finally, we use a numerical instance to give further analysis. The results illustrate that, under our assumptions, the high-quality-level products play a more important role in increasing revenue and in such quality-sensitive market the firm should supply the highest quality products in every quality interval.
Revenue management Quality differentiation Two quality level products Pricing model
Xiaodong Sun Peng Tian Yun Cao Yue Jiao
Antai College of Economics and Management Shanghai Jiao Tong University Shanghai 200052, China Dept. of Management Science and Engineering University of Shanghai for Science and Technology Shangh
国际会议
上海
英文
2007-09-21（万方平台首次上网日期，不代表论文的发表时间）