Abstract
An integer programming model is formulated for determining the optimal market segmentation and pricing policy for fixed-capacity service industries to maximize their yield, given a set of defined potential market segments with known demand curves. The model incorporates infiltration of customers from high priced to low priced market segments. Using a real-life-size numerical example from a hotel management environment, the model was solved by easily accessible spreadsheet software on a personal computer.
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More From: International Journal of Services Technology and Management
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