INCIHUSA   20883
INSTITUTO DE CIENCIAS HUMANAS, SOCIALES Y AMBIENTALES
Unidad Ejecutora - UE
artículos
Título:
Analysing a pricing policy for a home centre: A case study
Autor/es:
MAGLIONE, DORA; DIBLASI, ANGELA
Revista:
Journal of financial Risk Managment
Editorial:
Scientific Research
Referencias:
Lugar: New York; Año: 2014 vol. 3 p. 9 - 18
ISSN:
2167-9533
Resumen:
One critical aspect of retailer category management is pricing the items in order to maximize totalprofits. To define an appropriate pricing policy, a retailer should evaluate how changes in prices ofa set of items may impact their shelves or inter demands. In this setting, elasticities play a majorrole. In addition, a proper policy can be defined from different points of view. In this paper, esti-mation of a profit function and its maximization under different scenarios is used as a tool to ana-lyze such policy. Estimation of this function is performed through a previous selection of itemswithin a home center category. Then, an adequate AIDS model allowing calculation of elasticities isfitted. Moreover, a profit function is defined in terms of prices and demands. This functionis linea-rized for the following two purposes, to express it in terms of elasticities, and to maximize it moreeasily under the consideration of different sets of item prices defined in a convex set. Then, confi-dence intervals for the total and marginal profits were built to gather the randomness of demands.The results are applied to the selected items in a home center that behaves as a monopoly in thearea.