Document Type
Thesis
Date of Award
Spring 5-31-1988
Degree Name
Master of Science in Management Engineering - (M.S.)
Department
Industrial and Management Engineering
First Advisor
Carl Wolf
Abstract
The deregulation of AT&T, has impacted telecommunication product pricing in the U.S. market. Previously, pricing had been based on cost plus mark-up, as stipulated by regulatory commissions. Now, pricing decisions require consideration of the competitive impact, consumer demand for the product, corporate pricing objectives and marketing strategies. This paper proposes a pricing process that is relevant for this new environment which enables the product manager to price properly.
The method proposed utilizes microeconomic theory and takes into account the product test price, unit cost, opportunity cost, nonprice factor cost and consumer demand. Incorporating a number of different pricing strategies, it simulates their effect on the profitability of the firm and then identifies the product price that will maximize profit.
To facilitate the understanding of the proposed procedure, three cases are included that illustrate its application. Additionally, a product plan to aid in monitoring the market performance of the product is presented.
Recommended Citation
Sullivan, Katherine J., "A model for the determination of market based pricing of telecommunication products" (1988). Theses. 1407.
https://digitalcommons.njit.edu/theses/1407
Included in
Business Administration, Management, and Operations Commons, Operations Research, Systems Engineering and Industrial Engineering Commons
