Applications for Pricing Decisions

Vithala R. Rao
Additional contact information
Vithala R. Rao: Cornell University

Chapter Chapter 8 in Applied Conjoint Analysis, 2014, pp 291-316 from Springer

Abstract: Abstract One significant application of conjoint analysis is in helping the manager with pricing decisions. Determination of optimal price for a new product (or brand) is a typical application. One way to determine the best price is to estimate the market obtainable from the new product at different feasible prices for the new product profile. We described the use of conjoint simulators in Chap. 3 . Additional information on cost functions can be integrated into the estimates of market share to yield estimates of profit from the new product at various prices. The price at which the computed profit is highest can be deemed to be the best price for the new product. This approach can also yield a generic estimate of price elasticity for the product category as a whole.

Keywords: Price Elasticity; Reservation Price; Conjoint Analysis; Optimal Price; Informational Effect (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-540-87753-0_8

Ordering information: This item can be ordered from
http://www.springer.com/9783540877530

DOI: 10.1007/978-3-540-87753-0_8

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().