Business Analytics using Dynamic Pricing based on Customer Entry-Exit Rates Tradeoff

  • Hamed Fazlollahtabar Department of Industrial Engineering, School of Engineering, Damghan University, Damghan Iran.
  • Minoo Talebi Ashoori Purdue University Northwest, IN, USA
DOI: https://doi.org/10.19139/soic-2310-5070-551
Keywords: Business intelligence and analytics, Dynamic pricing, Customer entry-exit rates

Abstract

This paper concerns with an integrated business process to be applied as a decision support for market analysis and decision making. The proposed business intelligence and analytics system makes use of an extract, transform and load mechanism for data collection and purification. As a mathematical decision optimization, dynamic pricing is formulated based on customer entry-exit rates in a history-based pricing model. The optimal prices for products are obtained so that aggregated profit is maximized. A case study is reported to show the effectiveness of the approach. Also, analytical investigations on the impacts of the sensitive parameters of the pricing model are given.

Author Biographies

Hamed Fazlollahtabar, Department of Industrial Engineering, School of Engineering, Damghan University, Damghan Iran.
Department of Industrial Engineering, School of Engineering, Damghan University, Damghan Iran.
Minoo Talebi Ashoori, Purdue University Northwest, IN, USA
Purdue University Northwest, IN, USA

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Published
2020-02-18
How to Cite
Fazlollahtabar, H., & Talebi Ashoori, M. (2020). Business Analytics using Dynamic Pricing based on Customer Entry-Exit Rates Tradeoff. Statistics, Optimization & Information Computing, 8(1), 272-280. https://doi.org/10.19139/soic-2310-5070-551
Issue
Vol 8 No 1 (2020)
Section
Research Articles
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