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A Dynamic Customer-Centric Pricing Approach for the Product Line Pricing Problem

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Operations Research Proceedings 2013

Part of the book series: Operations Research Proceedings ((ORP))

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Abstract

In this paper, we address a service provider’s product line pricing problem for substitutable products. We consider a market that is composed of different customer segments of various sizes. The customers belonging to a segment have the same segment-specific preference rankings. The seller is able to adopt a dynamic pricing strategy and offer different prices for the products to different customer segments. We introduce a mixed-integer linear programming formulation for this problem which is solved by means of IBM ILOG CPLEX. We conduct several computational experiments and present some preliminary results.

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References

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Author information

Authors and Affiliations

  1. Department of Analytics and Optimization, University of Augsburg, Universitätsstr. 16, 86135, Augsburg, Germany

    Michael Neugebauer

Authors
  1. Michael Neugebauer
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Correspondence to Michael Neugebauer .

Editor information

Editors and Affiliations

  1. Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam, Rotterdam, The Netherlands

    Dennis Huisman

  2. Erasmus School of Economics, Erasmus University Rotterdam, Rotterdam, The Netherlands

    Ilse Louwerse

  3. Erasmus School of Economics, Erasmus University Rotterdam, Rotterdam, The Netherlands

    Albert P.M. Wagelmans

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Neugebauer, M. (2014). A Dynamic Customer-Centric Pricing Approach for the Product Line Pricing Problem. In: Huisman, D., Louwerse, I., Wagelmans, A. (eds) Operations Research Proceedings 2013. Operations Research Proceedings. Springer, Cham. https://doi.org/10.1007/978-3-319-07001-8_44

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