The Sorting Process as a Tool for Promoting the Demand of Heterogeneous Customers

Tchai Tavor, Limor Dina Gonen and Uriel Spiegel
Additional contact information
Tchai Tavor: Department of Economics, The Max Stern Academic College of Emek Yezreel, Jezreel Valley 999080, Israel
Limor Dina Gonen: Department of Economics and Business Administration, Ariel University, Ariel 999080, Israel
Uriel Spiegel: Department of Management, Bar-Ilan University, Israel and Zefat College, Ramat Gan 999080, Israel

Mathematics, 2021, vol. 9, issue 2, 1-18

Abstract: The present study concerns product diversification. The products differ in size, shape, flavor, fat content, etc., so that the producer can more specifically modify the particular product to the unique requirements of nonhomogeneous customers. The mathematical model assumes diversified demands of nonhomogeneous consumers for an initial unsorted item. The sorting process generates a better match between customer requirements and the actual supply of sorted products. Thus, the implementation of sorting costs allows for an increase in customer demands by adopting product characteristics that are closer to customer needs and tastes. The study also considers the pricing policy for diversified products in order to determine if price discrimination is preferable for attaining the manufacturer’s goal of profit maximization.

Keywords: heterogeneous customers; heterogeneous population; diversified products; sorting process; sales management (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7390/9/2/152/pdf (application/pdf)
https://www.mdpi.com/2227-7390/9/2/152/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jmathe:v:9:y:2021:i:2:p:152-:d:478859

Access Statistics for this article

Mathematics is currently edited by Ms. Emma He

More articles in Mathematics from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().