Customer Data-Oriented Multi-Product Pricing Model

Abstract

Through interaction with online consumers, e-commerce websites can gather data reflecting consumer preferences. The available data on consumer preferences together with sophisticated analytical tools enables companies’ increases in profit through optimization of prices. We consider a class of models of consumer purchasing behavior, each of which affected the data on a consumer’s requirements and budget constraint to subsequent purchasing tendencies. We can study for the multi-product pricing problem based on the max budgets of consumers, and a customer data-oriented multi-product pricing model is presented. Proposed models were solved through genetic algorithms. Optimal solution of the given examples shows that this model is effective for enterprises.