Adding Cost-Drivers To The Pricing Process

Topics:
Pricing and Margins
Tags:
Marketing,
Marketing Research,
Parameter,
Pricing,
Pricing Strategy,
Service
Source:
Ghent University

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Overview: Given the growing level of competition in telecom, it has become very difficult to raise prices of service offers in time. In order to make a well informed decision, several parameters must be taken into account. Some of these parameters are market driven, for instance a demand-curve showing the amount of clients that can be expected for a certain price of the service. While these parameters certainly are very important, the pricing decisions should also depend on the cost of providing the service. We also show the positive effect that the introduction of a new service might have on the profit-margins of other services and how to quantify this effect using the proposed method.

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Format: PDF | Size: 111KB | Date: Sep 2006 | Pages: 7

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