TY - GEN
T1 - Pricing Optimization of Products and Value-added Services based on Multinomial Logit Model
AU - Qi, Wei
AU - Pei, Junlin
AU - Liu, Xuwang
AU - Guo, Xiwang
AU - Wang, Jiacun
AU - Tang, Ying
N1 - Publisher Copyright:
© 2022 IEEE.
PY - 2022
Y1 - 2022
N2 - The quality of durable consumer goods is more and more concerned by consumers, and the development of value-added services to improve product quality has become an important way for enterprises to obtain profits. Based on the multinomial logit (MNL) model, this paper establishes a product line optimization model considering value-added services, which helps find the optimal pricing, market share and maximum profit. Through numerical experiments, the effects of the ratio of service price to product price, product quality, service quality, utility loss caused by product failure on the optimal solutions are studied. The study finds that when developing a product line, increasing the relative price of services while reducing product pricing is the optimal strategy. The research results can provide theoretical basis and decision support for the pricing of durable consumer goods and value-added services.
AB - The quality of durable consumer goods is more and more concerned by consumers, and the development of value-added services to improve product quality has become an important way for enterprises to obtain profits. Based on the multinomial logit (MNL) model, this paper establishes a product line optimization model considering value-added services, which helps find the optimal pricing, market share and maximum profit. Through numerical experiments, the effects of the ratio of service price to product price, product quality, service quality, utility loss caused by product failure on the optimal solutions are studied. The study finds that when developing a product line, increasing the relative price of services while reducing product pricing is the optimal strategy. The research results can provide theoretical basis and decision support for the pricing of durable consumer goods and value-added services.
UR - https://www.scopus.com/pages/publications/85142713029
UR - https://www.scopus.com/pages/publications/85142713029#tab=citedBy
U2 - 10.1109/SMC53654.2022.9945077
DO - 10.1109/SMC53654.2022.9945077
M3 - Conference contribution
AN - SCOPUS:85142713029
T3 - Conference Proceedings - IEEE International Conference on Systems, Man and Cybernetics
SP - 1219
EP - 1223
BT - 2022 IEEE International Conference on Systems, Man, and Cybernetics, SMC 2022 - Proceedings
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 2022 IEEE International Conference on Systems, Man, and Cybernetics, SMC 2022
Y2 - 9 October 2022 through 12 October 2022
ER -