Applications of flexible pricing in business-to-business electronic commerce. IBM Syst J

IBM Research Division, Thomas J. Watson Research Center, P.O. Box 218, Yorktown Heights, New York 10598, USA
Ibm Systems Journal (Impact Factor: 1.79). 02/2002; 41(2):287 - 302. DOI: 10.1147/sj.412.0287
Source: IEEE Xplore


The increasingly dynamic nature of business-to-business electronic commerce has produced a recent shift away from fixed pricing and toward flexible pricing. Flexible pricing, as defined here, includes both differential pricing, in which different buyers may receive different prices based on expected valuations, and dynamic-pricing mechanisms, such as auctions, where prices and conditions are based on bids by market participants. In this paper we survey ongoing work in flexible pricing in the context of the supply chain, including revenue management, procurement, and supply-chain coordination. We review negotiation mechanisms for procurement, including optimization approaches to the evaluation of complex, multidimensional bids. We also discuss several applications of flexible pricing on the sell side, including pricing strategies for response to requests for quotes, dynamic pricing in a reverse logistics application, and pricing in the emerging area of hosted applications services. We conclude with a discu ssion of future research directions in this rapidly growing area.

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    • "These approaches have been illustrated through a hypothetical case study, which has a very strong resemblance to an actual business problem of pricing IaaS for a specific engagement. Global Journal of Flexible Systems Management This proposed hybrid methodology would also address the need of flexibility literature in pricing schemas, while addressing the requirements surrounding greater customer participation and orientation in the business strategy formulation thereby facilitating greater openness to the customer's uniqueness of needs, deeper understanding of the variation in needs, improved accommodation of the fluctuation in needs and therefore greater relationship orientation of the organization (Sushil 1997; Bichler et al. 2002; Zhang et al. 2010). Further, the hybrid methodology also addresses the need of literature focusing on the systematic approaches to accommodate the diversity in customer's requirements rather than on the core offering while pricing such services (Sushil 2012c; Wu and Banker 2010). "
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    • "The pricing technique has a wide range of applications such as marketing (e.g. Bertsimas and Perakis, 2001; Bichler et al., 2002), supply chain management (e.g. Jia and Hu, 2011), inventory management (e.g. "
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