Operations Research, Systems Engineering and Industrial Engineering Commons^™

A Model For The Determination Of Market Based Pricing Of Telecommunication Products, Katherine J. Sullivan

Theses

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 …