 B2B Price Optimization AnalyticsJon A. Higbie Chapter 9 in Revenue Management, 2011, pp 120-135 from Palgrave Macmillan Abstract: Abstract Business to business (B2B) pricing differs from business to consumer (B2C) pricing. In both paradigms modeling demand as a function of price is central, but the nature of demand in the two cases is different, necessitating different analytic models. B2C is characterized by large demand volumes, each transaction representing a very small proportion of total revenue. On the other hand, B2B is characterized by relatively smaller transaction volumes, with each transaction representing a much larger proportion of total revenue. The fundamental differences in transaction volumes and revenue per transaction require different analytic processes. In the B2C setting demand can be modeled in aggregate and individual price recommendations applied to multiple transactions. In the B2B setting, each transaction is analysed and priced individually, characteristics enabled by the relatively smaller volume of transactions, and necessitated by the much larger revenue impact of each transaction. Keywords: Offer Price; Revenue Management; Competitive Price; Price Performance; Contribution Function (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-29477-6_10 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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