Dynamic decreasing pricing method
Journal Title: Комп’ютерне моделювання: аналіз, управління, оптимізація - Year 2017, Vol 2, Issue 2
Abstract
Online trading firms have to get involved in some kinds of marketing and promotion activities in the new world that appears with electronic trade. The firms that aim to profit and sell more products use different pricing methods. Aspects of internet pricing involve: consumer aspect, seller aspect, competitive aspect, relational (value focused) aspect. First of this aspects includes price differentiation and dynamic pricing. Increasing and decreasing pricing is a new kind of dynamic pricing method. Both psychological and strategical pricing methods that force customers to buy, and even to advice the goods to other customers, are used when the prices decrease. Dynamic pricing issues turns out satisfactory in industries with high initial cost, consuming capacity, short term selling, price sensitive demand. The psychological effect of the price is an important factor that makes impact on the decision to buy or on the sense of quality. The decision to buy an unnecessary product can motivate a customer to buy it by means of the price experience of another customer. The price is an important factor when the product features are satisfactory; price comparison is fast and easy on the internet. In this study it is explained that Dynamic Decreasing Pricing (DDP) benefits both psychologically and strategically as a method of pricing. With this method, buying decreases the prices, therefore the costumers are forced to buy or advice the product to other customers to make the final price lower. The firm can sell product rapidly till its limits, and therefore the loss of profit can be ignored as the selling in target time interval is high. The Dynamic Decreasing Pricing method is going to be formulated mathematically, designed with stored procedure and it is going to be practicable in database.
Authors and Affiliations
M. Akbulut, С. Okuyan
Keywords
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