Optimal pricing of a personalized product

Suresh P. Sethi1
1School of Management, The University of Texas at Dallas, Richardson, USA

Tóm tắt

This paper deals with optimal pricing of a personalized product such as a personal portrait or photo. A new model of the pricing structure inspired by two real-life cases is introduced to the literature and solved to obtain optimal photo sitting fees and the final product price. A sensitivity analysis with respect to the problem parameters is performed.

Tài liệu tham khảo

Murthi, B.P.S. and Sarkar, S. (2003). The role of the management sciences in research on personalization. Management Science, 49 (10): 1344–1362