Smart Pricing: Linking Pricing Decisions with Operational Insights

19 Pages Posted: 9 Mar 2004

See all articles by Moritz Fleischmann

Moritz Fleischmann

University of Mannheim, Business School

Joseph M. Hall

Tuck School of Business at Dartmouth

David F. Pyke

School of Business Administration, University of San Diego

Date Written: December 2003, 12

Abstract

The past decade has seen a virtual explosion of information about customers and their preferences. This information potentially allows companies to increase their revenues, in particular since modern technology enables price changes to be effected at minimal cost. At the same time, companies have taken major strides in understanding and managing the dynamics of the supply chain, both their internal operations and their relationships with supply chain partners. These two developments are narrowly intertwined. Pricing decisions have a direct effect on operations and visa versa. Yet, the systematic integration of operational and marketing insights is in an emerging stage, both in academia and in business practice. This article reviews a number of key linkages between pricing and operations. In particular, it highlights different drivers for dynamic pricing strategies. Through the discussion of key references and related software developments we aim to provide a snapshot into a rich and evolving field.

Keywords: dynamic pricing, operations-marketing interface, supply chain management, capacity, inventory

JEL Classification: M, M11, R4, D4

Suggested Citation

Fleischmann, Moritz and Hall, Joseph M. and Pyke, David F., Smart Pricing: Linking Pricing Decisions with Operational Insights (December 2003, 12). ERIM Report Series Reference No. ERS-2004-001-LIS. Available at SSRN: https://ssrn.com/abstract=496708

Moritz Fleischmann

University of Mannheim, Business School ( email )

University of Mannheim
P.O. Box 10 34 62
Mannheim, 68131
Germany

Joseph M. Hall

Tuck School of Business at Dartmouth ( email )

Hanover, NH 03755
United States

David F. Pyke (Contact Author)

School of Business Administration, University of San Diego ( email )

5998 Alcala Park
San Diego, CA 92110-2492
United States
619-260-4886 (Phone)

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