The Implementation Challenge of Pricing Decision Support Systems for Retail Managers
There has been an explosion in the availability of data and computing ability in retail management that has led to a new desire on the part of managers to implement demand based management. Demand based management uses statistical models to predict consumer price response using historical information. These models can be used to construct pricing decision support systems for retail managers. Currently, many firms have begun offering software to perform price optimization. This article considers how recent advances in academic research can contribute to the implementation of these systems, and in turn consider the new questions likely to be posed by the developers and users of these new systems.
This is the pre-peer-reviewed version of the following article:
Alan L. Montgomery, Ph.D. (2005), "The Implementation Challenge of Pricing Decision Support Systems for Retail Managers", Applied Stochastic Models in Business and Industry 21: 367-378, which has been published in final form at Wiley InterScience.