scholarly journals Pelatihan Pendidikan Entrepreneurship Bagi Siswa-Siswi SMAK Frateran: Penentuan Strategi Harga Jual

2021 ◽  
Vol 3 (2) ◽  
Author(s):  
Lenny Gunawan ◽  
Agustiono Agustiono ◽  
Charly Hongdiyanto ◽  
Wendra Hartono
Keyword(s):  
Community Service ◽  
Dynamic Pricing ◽  
Service Industry ◽  
Value Added ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Low Order

The purpose of this community service to Frateran Highschool is to increase their understanding towards Determining Pricing Strategy within their businesses. This training is on live discussion via zoom regarding the previous experiences in determining pricing strategy among lecturers, facilitators, and students as participants. These activities were conducted in an hour meeting session on 17th September 2021, as community service from Ciputra lecturers’ activity to SMAK. Frateran Surabaya. The class was attended by 12 out of 15 students registered, grade XII within Entrepreneurship Subject. The pricing strategies matrix consists of 3x3 quadrants, which then divided into 1. Fixed menu Pricing, and 2. Dynamic Pricing. Students also learned about value added within a product, thus lead them into positioning and differentiation for the businesses. The explanation also given by using examples for each method: Traveloka, Gofood, Grabfood (promotional posters & vouchers) to balance out peak and low order times, Ovo (program features in application) increasing customers convenience in adding values, Starbucks (personnel contribution service and behind the scenes operational video). The conclusion, the activity was able to increase students’ understanding of fixed and dynamic pricing strategy, value added within products/services, and finally positioning and differentiation within service industry.

Dynamic pricing of perishable food as a sustainable business model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michael Scholz ◽  
Roman-David Kulko
Keyword(s):  
Willingness To Pay ◽  
Food Waste ◽  
Dynamic Pricing ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Sustainable Business ◽  
Content Type ◽  
Food Retailers ◽  
Static Pricing ◽  
The Impact

PurposeThe purpose of this paper is to (1) investigate the effect of freshness on consumers' willingness to pay, (2) derive static and dynamic pricing strategies and (3) compare the effect of these pricing strategies on a retailer's revenue and food waste. This investigation helps to reveal the potentials of dynamic pricing strategies for building more sustainable business models.Design/methodology/approachThe authors conduct an online experiment to measure consumers' willingness to pay for fresh and three-days’ old strawberries. The impact of freshness on willingness to pay is analysed using univariate tests and regression analysis. Pricing strategies are compared using a Monte Carlo simulation.FindingsThe results of this study show that freshness largely determines consumers' willingness to pay and price sensitivity. This renders dynamic pricing a promising strategy from an economic point of view. The results of the simulation study show that food waste can be reduced by up to 53.6% with a dynamic pricing instead of a static pricing strategy in the case that there are as many consumers as strawberry packages in the inventory. Revenue can be increased by up to 10% compared to a static pricing strategy based on fresh strawberries.Practical implicationsThis study suggests that food retailers can improve their revenue when switching from static to dynamic pricing. Furthermore, in most cases, food retailers can reduce food waste with a dynamic instead of a static-pricing strategy, which might help to improve their image through a more sustainable business model and attract additional consumers.Originality/valueThis study is the first to analyse the possibility of using food freshness to design a dynamic pricing strategy and to analyse the impact of such a pricing strategy on both, a retailer's revenue and a retailer's food waste.

scholarly journals Optimal Policies for the Pricing and Replenishment of Fashion Apparel considering the Effect of Fashion Level

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-12 ◽  
Author(s):  
Qi Chen ◽  
Qi Xu ◽  
Wenjie Wang
Keyword(s):  
Dynamic Pricing ◽  
Price Policy ◽  
Pricing Strategy ◽  
Sensitivity Analyses ◽  
Pricing Strategies ◽  
System Parameters ◽  
Optimal Dynamic ◽  
Replenishment Cycle ◽  
Fashion Apparel ◽  
Short Product

Fashion apparel, with short product lifecycles and highly volatile demand, requires careful attention during both the initial ordering periods before the selling season and during the selling season, with its decisions regarding price and replenishment. Using Pontryagin’s maximum principle method, this study investigates the problem of the dynamic pricing strategy and replenishment cycle for fashion apparel by considering the effect of fashion level on demand. First, we provide a framework for fashion apparel by formulating a model that includes both price and demand at different fashion levels. We then provide an algorithm to derive the optimal dynamic pricing strategy and replenishment cycle. Numerical examples and sensitivity analyses of the main system parameters are provided to demonstrate the obtained results, which form the basis for managerial insights. It is shown that the apparel retailer has three types of optimal dynamic pricing strategies and that the optimal strategy is independent of the replenishment cycle. The apparel retailer is able to realize the profit advantage of a continuously variable price policy by adjusting the sales price periodically.

scholarly journals Dynamic Pricing under Cost Reduction in the Presence of Myopic and Strategic Consumers

2019 ◽  
Vol 2019 ◽  
pp. 1-15
Author(s):  
Guangning Liu ◽  
Zhenzhong Guan ◽  
Hua Wang
Keyword(s):  
Dynamic Pricing ◽  
Cost Reduction ◽  
Pricing Strategy ◽  
Future Price ◽  
Purchase Decisions ◽  
Pricing Strategies ◽  
Strategic Consumers ◽  
Technology Advancement ◽  
Significant Cost Reduction ◽  
Strategic Waiting

After release, a product usually suffers cost reductions during its whole lifespan. Compared to the myopic, strategic consumers may have stronger incentive to delay the purchase once they perceive that a significant cost reduction will result in a markdown. The strategic (compared to the myopic) properties influence the seller both quantitatively in terms of proportion of strategic consumers and qualitatively in terms of customer patience. To forecast the reaction of the whole market under cost reduction, it is necessary to acquire the strategic properties. In this paper, we study the impacts of proportion of strategic consumers, customer patience, and cost reduction on dynamic pricing strategy when cost reduction comes from technology advancement. The seller makes pricing strategies when facing unknown future cost, and the buyer makes purchase decisions when facing unknown future price. Our study shows that generally both higher strategic consumer proportion and customer patience contribute to a delay in sales. Further, profit diversion happens under great combination of strategic properties. In addition, with the increase of customer patience, not only strategic but also myopic consumers will buy less. Finally, the strategic properties moderate the pricing strategy in latter stage when there is a cost reduction. This indicates a threshold as combination of strategic properties, upon which seller tends to offer a smaller markdown to discourage strategic waiting, and under which seller tends to offer a greater markdown to divert strategic consumers to the latter period.

scholarly journals A game theory application of a cruise value chain – the case of China

2018 ◽  
Vol 3 (2) ◽  
pp. 145-164 ◽  
Author(s):  
Grace W.Y. Wang ◽  
Qingcheng Zeng ◽  
Chenrui Qu ◽  
Joan Mileski
Keyword(s):  
Game Theory ◽  
Value Chain ◽  
Value Added ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Content Type ◽  
Market Participants ◽  
Market Shares ◽  
Theory Application ◽  
Decision Making Processes

Purpose Regardless of the facts showing a booming Chinese cruise market, cruise operations in China are very different from the current practices of the two major cruise markets – the US and the Mediterranean Sea. This study aims to quantify pricing strategies and possible incentive mechanisms of cruise operations in China. Design/methodology/approach Using optimization in economic-based game theory, the complexity of the pricing strategies and interaction and/or possible coordination within the cruise value-added chain can be captured. Findings The results show that a coordinative pricing strategy with Shapley profit redistribution within the value-added chain offers benefits to both cruise passengers and service suppliers. With two subsidy scenarios, one to the passenger and the other to the travel agent, a cooperative pricing strategy outperforms other strategies and successfully increases market shares and total revenue. Originality/value The advantages of coordination between participants in cruise value chain are quantified. Effective strategies for attracting players participating in cruise value chain are designed. This paper will provide market participants with strategies to enhance their decision-making processes.

scholarly journals Ticket Sales Prediction and Dynamic Pricing Strategies in Public Transport

2020 ◽  
Vol 4 (4) ◽  
pp. 36
Author(s):  
Francesco Branda ◽  
Fabrizio Marozzo ◽  
Domenico Talia
Keyword(s):  
Public Transport ◽  
Dynamic Pricing ◽  
Low Cost ◽  
Important Change ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Long Distance ◽  
Ticket Sales ◽  
Transport Services ◽  
Sales Prediction

In recent years, the demand for collective mobility services registered significant growth. In particular, the long-distance coach market underwent an important change in Europe, since FlixBus adopted a dynamic pricing strategy, providing low-cost transport services and an efficient and fast information system. This paper presents a methodology, called DA4PT (Data Analytics for Public Transport), for discovering the factors that influence travelers in booking and purchasing bus tickets. Starting from a set of 3.23 million user-generated event logs of a bus ticketing platform, the methodology shows the correlation rules between booking factors and purchase of tickets. Such rules are then used to train machine learning models for predicting whether a user will buy or not a ticket. The rules are also used to define various dynamic pricing strategies with the purpose of increasing the number of tickets sales on the platform and the related amount of revenues. The methodology reaches an accuracy of 95% in forecasting the purchase of a ticket and a low variance in results. Exploiting a dynamic pricing strategy, DA4PT is able to increase the number of purchased tickets by 6% and the total revenue by 9% by showing the effectiveness of the proposed approach.

Joint Pricing Strategies for Tobacco Manufacturing Equipment and Optional Value-added Service

2021 ◽  
Vol 7 (5) ◽  
pp. 1829-1841
Author(s):  
Deng Zhenghua ◽  
Hu Xiao
Keyword(s):  
Marginal Cost ◽  
Value Added ◽  
Lower Price ◽  
Pricing Strategy ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Closed Form Solutions ◽  
Manufacturing Enterprises ◽  
Value Added Service ◽  
Joint Pricing

Objectives: This paper constructs an analytic model for optimal pricing in which the interrelationship between the tobacco equipment and the optional value-added service supplied by tobacco equipment manufacturers are effectively depicted, and derives the closed-form solutions of the optimal prices, which has previously been considered analytically intractable in the bundling problem of pricing two goods. The research reveals that when the marginal cost of the optional value-added service is 0 and the valuation of the service for tobacco manufacturing enterprises is relatively low, it is advisable to adopt pure bundling pricing strategy; when the marginal cost of the service is 0 but the valuation of the service is relatively high, it is advisable to adopt separate pricing strategy; when the marginal cost of the service is greater than 0, separate pricing strategy is always optimal. And it is interesting that, under separate pricing strategy, the higher valuation of the tobacco equipment leads to lower price for the service; the higher marginal cost of the service leads to higher price for the service, but lower price for the tobacco equipment. This paper also proves that there are only two basic pricing strategies for tobacco equipment manufacturers: pure bundling pricing and separate pricing of the tobacco equipment and service.

KOMPARASI KINERJA KEUANGAN MELALUI PENDEKATAN ECONOMIC VALUE ADDED (EVA) PADA PERUSAHAAN TRANSPORTASI DI JAKARTA

2018 ◽  
Vol 3 ◽  
pp. 223-232
Author(s):  
Dwi Urip Wardoyo
Keyword(s):  
Financial Performance ◽  
Service Industry ◽  
Economic Value ◽  
Value Added ◽  
Added Value ◽  
Economic Value Added ◽  
Test Analysis ◽  
Transportation Service ◽  
Income Statement

This study aims to compare financial performance through profitability generated by two market participants in the witness transportation service industry in Jakarta, namely PT. BB compared to PT. ETU, this assessment is measured not limited to the profit generated but more than that by measuring financial added value through the concept of Eonomic Value Added produced by the two companies. The population in this study were all taxi transportation service companies in Jakarta. The sampling method selected two taxi companies that have the largest market share in DKI Jakarta, namely BB Taxi and ETU Taxi. The test analysis used in this study is ratio analysis through profit calculation and economic added value from the annual income statement. This study shows that there are (a) determination of the ratio of profit levels, (b) Determination of the comparison of economic value added of the two companies. Keywords :  Financial performance, Economic Value Added (EVA)

scholarly journals Pricing Strategies of Logistics Distribution Services for Perishable Commodities

Algorithms ◽  
2018 ◽  
Vol 11 (11) ◽  
pp. 186
Author(s):  
Tao Li ◽  
Yan Chen ◽  
Taoying Li
Keyword(s):  
Dynamic Pricing ◽  
Consumer Satisfaction ◽  
Service Providers ◽  
Time Constraints ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Pricing Model ◽  
Logistics Service ◽  
Distribution Services ◽  
Perishable Goods

The problem of pricing distribution services is challenging due to the loss in value of product during its distribution process. Four logistics service pricing strategies are constructed in this study, including fixed pricing model, fixed pricing model with time constraints, dynamic pricing model, and dynamic pricing model with time constraints in combination with factors, such as the distribution time, customer satisfaction, optimal pricing, etc. By analyzing the relationship between optimal pricing and key parameters (such as the value of the decay index, the satisfaction of consumers, dispatch time, and the storage cost of the commodity), it is found that the larger the value of the attenuation coefficient, the easier the perishable goods become spoilage, which leads to lower distribution prices and impacts consumer satisfaction. Moreover, the analysis of the average profit of the logistics service providers in these four pricing models shows that the average profit in the dynamic pricing model with time constraints is better. Finally, a numerical experiment is given to support the findings.

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