IT Support for the generic tactical decision making process of pricing in competitive consumer markets
Sustainable industrial production, which is the main theme of this conference, is only possible when the firm manufactures goods which appeal to potential customers, at prices that they are prepared to pay. These prices and the resulting sales volumes should enable the firm to meet all its costs and make a profit whilst meeting its longer term strategic goals of capturing or retaining appropriate levels of market share.
In order to help firms in the consumer goods industries to survive and prosper in competitive and fast changing markets and to enable them to meet their strategic goals, it is necessary to provide them with tools that enable them to better use the tactical decision levers at their disposal. This paper focuses on the main short or medium term lever that such companies can use in order to cope with the competition and examines the information technology needs to support the use of this lever via the business process which it constitutes i.e. the Pricing Process.
In the paper we show how certain novel pricing decision support tools developed in Manchester could be used to enable the firm to take better (i.e. more profitable) pricing decisions as compared to the unaided decision making process. Examples have been provided from the petroleum and reference is given to work on other consumer markets.
KeywordsPrice Process Sales Volume Price Move Price Decision Petrol Price
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