An Integrated Approach for Defining Pricing Strategies in Competitive Markets.
ABSTRACT Quality function deployment (QFD) is a customer-oriented decision support tool with cross-functional team members reaching a consensus in developing a new or improved product to increase customer satisfaction. In this paper, we concentrate on showing the strong effect of QFD methodology on customer satisfaction and on the price determination of a product. The end-users demand to the newly developed or existing products depends not only on the quality level and the price of that producer, but also upon those of its competitors. Our proposed pricing model applies game theory as its mathematical base. The equilibrium point of the game gives the best pricing strategy for the producers. We use the QFD methodology to obtain end-user preferences and quality levels of the competitors. Besides, QFD enables the producer to determine on which product technical requirements to concentrate in order to get more market share.
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ABSTRACT: We present a competitive model that describes the interaction between several competing telecommuni- cations service providers (SPs), their subscribers, and a n etwork owner. Competition between the service providers is assumed to take place in their pricing decision s as well as in terms of the quality of service (QoS) they offer. In turn, the subscribers' demand for the service of an SP depends not only on the price and QoS of that SP but also upon those proposed by all of its competitors. We consider two types of games to describe the competitive interactions and analyze the resulting equ ilibria. As quality of service measures, we consider delay, packet losses and call rejections. We establish cond itions for existence and uniqueness of the equilibria, compute them explicitly and characterize their properties .