Pricing Policy Research Articles

RESEARCH OF MARKETING PRICING OF ENTERPRISE POLICY

Abstract. Introduction. The article examines the economic concept of «price», «marketing pricing policy» and its interpretation by various domestic and foreign scientists. The process of the marketing policy of the enterprise's pricing and the use of various concepts of pricing, the choice of which depends on the characteristics of the product or service and the marketing goals of the enterprise, have been studied. Research in relation to a marketing pricing of enterprise policy is actual, as it will allow to decide the row of urgent problems, in particular, establishment of optimal price on products, increase of volumes of sales, increase of level of satisfaction of consumers and other and is especially appropriate in the conditions of strengthening of competition and introduction of new technologies in economic activity. The purpose of the article. Research of essence, maintenance and role of marketing pricing policy. Aims that can be attained by means of effective pricing policy. Metods. During research the methods of comparison, analysis, synthesis, abstraction, theoretical, historical and logical generalization are used. The dialectical method of research became methodological basis. Results. The essence of the economic concept "price", "marketing pricing policy" is revealed. It has been studied that the marketing policy of pricing is an important component of the company's marketing strategy. Formation of prices for goods and services requires the company to carefully analyze the market, competitors, consumers and own costs, and the main goal of pricing is to achieve maximum profit for the company. Conclusiоns. The analysis of the theoretical and practical aspects of marketing pricing policy showed the place and role that pricing policy plays in achieving strategic goals and ensuring the sustainable development of the enterprise, analyzed the main approaches to pricing and identified a number of factors affecting the choice of pricing strategy. It has been studied that in the process of marketing pricing policy, enterprises can use various concepts of pricing, such as price elasticity, competitiveness, consumer orientation and others. The choice of the pricing concept should depend on the characteristics of the product or service, as well as on the marketing goals of the enterprise. Further research is seen appropriate to point at sound determination of marketing strategies of companies of different patterns of ownership.

Multi-objective integrated optimization of geothermal heating system with energy storage using digital twin technology

Heat energy storage technology plays a significant role in energy systems, and the various technological solutions brought about by digitalization are especially valuable in the field of energy storage. This article proposes an innovative model based on digital twin technology to solve the supply–demand mismatch problem in geothermal heating systems. This model achieves multi-objective optimization of comprehensive cost, geothermal energy utilization rate, and carbon emission by constructing a heat storage geothermal heating system. Digital twin technology integrates data and information models of public buildings and facilitates their sharing and transmission throughout the entire lifecycle of the geothermal heating system. Initially, the proposed method employs a machine learning-based approach to accurately predict heating demand. Subsequently, the operation of the heat storage water tank and heat pump units is optimized to resolve difficulties in matching energy supply and demand. Finally, the method takes full advantage of time-of-use electricity pricing policies to reduce costs. The data utilized were collected from an office building in China over a period of six months. Experimental results demonstrate that: (1) In terms of predicting heating demand, the improved neural network proposed in this study achieved a prediction accuracy of 98%, which is a 10% improvement over comparative algorithms. Additionally, the experimental comparison of four types of errors showed that the machine learning method proposed had smaller errors across the board. (2) The method realized collaborative multi-objective optimization, and in five scenarios, the comprehensive performance index increased by up to 38.03% compared to the benchmark system. This indicates that intelligent technology is an effective means of enhancing the energy sustainability of geothermal heating systems, and the use of geothermal energy as a clean energy source effectively addresses issues related to the storage, utilization, management, and energy conservation of buildings.

Analysis of the Elasticity of Rice Demand for Poor Households in Sirimau District, Ambon City in 2024

This study aims to analyze the elasticity of rice demand among poor households in Sirimau District, Ambon City. The main focus of this study is the influence of household income, number of family members, the price of Bulog rice, and the price of premium rice on rice consumption among poor households. The analytical method used involves linear regression to identify the relationships between these variables. The results of the study indicate that household income, number of family members, and the price of Bulog rice have a significant positive effect on rice consumption among poor households. Conversely, the price of premium rice does not show a significant effect on rice consumption in this household group. These findings suggest that Bulog rice pricing policies and increasing the income of poor households can be important factors in boosting their rice consumption. This research provides valuable insights for the formulation of more effective food policies to support the welfare of poor households in Sirimau District, Ambon City.

The strategy of differential pricing and network utilization: evidence from India’s telecommunications sector

PurposeThe network capacity deployed to manage the busy hour (or peak-hour) traffic remains underused during the nonbusy (off-peak) hours. Transferring some traffic from peak-hour to off-peak hours is likely to improve the utilization of network resources during the off-peak hours. This paper aims to examine whether diverting traffic from peak-hour to off-peak hours is possible by adopting the differential pricing policy.Design/methodology/approachThe peak-load pricing theory suggests that the policy of differential pricing is socially optimal when there is peak demand for a particular duration and then there is off-peak demand. In this study, hourly traffic data from both peak and off-peak periods were collected from the Indian telecom service provider, “Aircel.” The paper analyzed the disparity in traffic between peak and off-peak hours using the nonparametric Tukey’s test. An experiment was also conducted to analyze whether a significant shift in telecom traffic occurs from the peak to the off-peak period when a price discount is applied during the off-peak period.FindingsStatistically significant differences were observed in network traffic between peak-hour and off-peak hours. The network utilization of the telecom service provider Aircel was notably lower, particularly during the off-peak hours. The experiment demonstrated a high degree of price sensitivity among telecom service subscribers. Telecom Regulatory Authority of India (TRAI) has not considered network utilization of telecom service providers as a key performance indicator. Based on the outcomes of the study, this paper recommends that TRAI should adopt a more proactive approach by encouraging telecom service providers to follow the policy of differential pricing to enhance utilization of their network capacity.Originality/valueTo the best of the authors’ knowledge, this is the first paper to explore the issue of pricing as a tool for bringing about more uniform movement of telecom traffic, thereby enhancing network utilization within India’s telecommunications sector.

Discovering the Intriguing Dynamics of Transfer Pricing: Tax Burden, Foreign Ownership, and Company Size

ownership, and company size on transfer pricing practices within the mining subsector of manufacturing companies listed on the Indonesia Stock Exchange from 2018 to 2022. Through purposive sampling, 35 datasets out of a total population of 40 companies were selected for analysis. Multiple linear regression served as the analytical tool, and hypothesis testing was executed using SPSS version 25 software. The findings underscore that both tax burden and foreign ownership wield significant influence over transfer pricing practices. Notably, companies exhibit a propensity to leverage transfer pricing as a strategic tool for tax burden management, particularly in instances of heightened foreign ownership. Interestingly, however, company size does not exhibit a significant impact on transfer pricing practices, suggesting that entities of varying magnitudes within this subsector tend to adopt analogous approaches to transfer pricing policies. These findings are pivotal for both regulatory bodies and corporate managers, as they provide valuable insights into the factors shaping transfer pricing practices. Moreover, the formulation of tax policies geared towards fostering transparency and equity in business operations. By comprehensively understanding the dynamics at play in transfer pricing, stakeholders can navigate regulatory landscapes more adeptly and devise strategies that promote fairness and compliance within the realm of taxation. This study thus contributes to the broader discourse on tax policy and corporate governance, offering a nuanced understanding of the intricate relationship between tax structures, ownership dynamics, and corporate practices within the mining subsector of Indonesia's manufacturing industry.

Pricing, Procurement and Reimbursement Policies for Incentivizing Market Entry of Novel Antibiotics and Diagnostics: Learnings from 10 Countries Globally.

Fostering market entry of novel antibiotics and enhanced use of diagnostics to improve the quality of antibiotic prescribing are avenues to tackle antimicrobial resistance (AMR), which is a major public health threat. Pricing, procurement and reimbursement policies may work as AMR 'pull incentives' to support these objectives. This paper studies pull incentives in pricing, procurement and reimbursement policies (e.g., additions to, modifications of, and exemptions from standard policies) for novel antibiotics, diagnostics and health products with a similar profile in 10 study countries. It also explores whether incentives for non-AMR health products could be transferred to AMR health products. This research included a review of policies in 10 G20 countries based on literature and unpublished documents, and the production of country fact sheets that were validated by country experts. Initial research was conducted in 2020 and updated in 2023. Identified pull incentives in pricing policies include free pricing, higher prices at launch and price increases over time, managed-entry agreements, and waiving or reducing mandatory discounts. Incentives in procurement comprise value-based procurement, pooled procurement and models that delink prices from volumes (subscription-based schemes), whereas incentives in reimbursement include lower evidence requirements for inclusion in the reimbursement scheme, accelerated reimbursement processes, separate budgets that offer add-on funding, and adapted prescribing conditions. While a few pull incentives have been piloted or implemented for antibiotics in recent years, these mechanisms have been mainly used to incentivize launch of certain non-AMR health products, such as orphan medicines. Given similarities in their product characteristics, transferability of some of these pull incentives appears to be possible; however, it would be essential to conduct impact assessments of these incentives. Trade-offs between incentives to foster market entry and thus potentially improve access and the financial sustainability for payers need to be addressed.

The Effort of The Government and Its Impact on Maintaining the Stability of Cooking Oil Prices

The phenomenon of oil scarcity and rising world oil prices have had an impact on the increase in cooking oil prices in Indonesia. The Indonesian government, through the Ministry of Trade, is trying to intervene in the price of cooking oil by providing oil subsidies and export bans. This article aims to describe the policy process carried out by the Indonesian government to reduce the price of cooking oil and its impact on the traditional market economy. This field research was conducted at the Srijaya Sayur Traditional Market, in Madiun City using qualitative methods. Primary data was collected using interviews with traders, sales from cooking oil distributors, and market managers. The findings of this research reveal that the price intervention policy implemented by the government was initially carried out suddenly. However, as time goes by, the Indonesian government has taken steps to improve the price of cooking oil which is well spread throughout Indonesia. This is in line with Ibn Taymiyah's thoughts on the concept of distribution justice and price policy through government intervention. The positive impact of the policy of banning petroleum exports and providing subsidies has made the price of cooking oil affordable and in line with people's purchasing power. The negative impact is that many market distortions, starting from distribution processes, hoarding and selling prices that do not comply with the policy, to shortages of goods that occur in traditional markets, especially at the beginning of the policy. In the end, this negative impact began to subside along with the abundance of oil stocks on the market which was strengthened by the government's efforts to eradicate all individuals involved in becoming mafias and breaking the law.

Determinan Transfer Pricing Pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia Periode 2019-2023

Transfer pricing is used to determine prices for goods and services traded from subsidiaries to other subsidiaries or to the parent company. The price set is not in accordance with the reasonable market price. Multinational companies implement transfer pricing policies to reduce taxes paid by manipulating the prices of goods traded to related parties of the company. The aim of this research is to find out what factors can influence companies in carrying out transfer pricing. The dependent variable examined in this research is transfer pricing. The independent variables in this research consist of taxes, foreign ownership, company size, and leverage. This type of research is quantitative research that tests the influence between hypothesized variables through the presentation of numerical data. The data used in this research is secondary data sourced from the financial reports of mining companies listed on the Indonesia Stock Exchange for 2019-2023. The sample in this research was determined using the purposive sampling method. The analysis technique used in the research is multiple linear regression analysis with the help of the IBM SPSS version 21 program. The results of this research show that tax has a significant positive effect on transfer pricing, foreign ownership has a significant positive effect on transfer pricing, leverage has a significant positive effect on transfer pricing, and Company size has no effect on transfer pricing.

Impact of cigarette price and tobacco control policies on youth smoking experimentation in Albania

BackgroundAlbania has one of the highest smoking prevalence in Europe especially among the youth. There is a lack of evidence in Albania, as well as in most of Eastern Europe...

Household water price and income elasticities under increasing-block pricing policy in China: an estimation using nationwide large-scale survey data

Figuring out household water demand response is of importance to sustainable water pricing policy making and optimalization. The paper estimates price and income elasticities of residential water demand in China by using the unique dataset from Chinese Household Water Use Behavior Survey 2019 in 50 cities. Two instrumental variables of marginal water price and average water price are used to address the endogeneity in the context of increasing-block water pricing policy. Results show that price elasticity ranges from −0.170 to −0.543, meaning that the demand for water is inelastic. Income elasticity ranges from 0.062 to 0.133, indicating that water is a necessary commodity. It unveils that water scarcity cities have more sensitive price response. It verifies the effectiveness of the differential increasing-block water pricing schemes tailor-made to local water resources endowments. Besides, it shows that high water-consuming households have more sensitive price response. It suggests that implementing more stringent IBWP scheme for those households constitutes a promising policy improvement option in the future.

Cold ironing techno-economical study for a port with photovoltaic plants

According to European regulation 2023/1804/EU, all member states shall ensure the availability of cold ironing (CI) in large ports for at least 90 % of the total number of port calls of seagoing ships above 5000 gross tonnes, by the end of 2029. This is a measure expected to improve air quality, especially in the vicinity of the port's urban environment. Preliminary studies show that there are financial viability issues related to CI installations, under the current electricity pricing policies and the high investment cost for CI infrastructure. In this paper, the financial viability of the penetration of photovoltaic (PV) units optimized from spatial and power produced point of view is investigated. The proposed method is applied to various ship types, indicatively for the Thessaloniki Port, taking into consideration the connection with the Medium Voltage (MV) electricity distribution grid, as well as the construction, operation, and maintenance costs, under modified economic criterion of benefit-cost ratio (BCR).

Target price policy and rural household income: Evidence from China

Target price policy and rural household income: Evidence from China

Penerapan Metode SAW Sistem Pendukung Keputusan Bantuan Pupuk RDKK pada Petani Wilayah Hutan

Fertilizer is one component that is really needed by farmers, to maintain soil fertility and increase production results from their agriculture. So, it is not surprising that the need for fertilizer for farmers in Indonesia is very high. The government continues to encourage efficient use of fertilizer through appropriate pricing policies, procurement and distribution, so the role of fertilizer is very important for farmers. The author created a Decision Support System which aims to assist in determining recipients of subsidized fertilizer assistance appropriately and on target. The author uses the Simple Additive Weighting (SAW) method in creating a decision support system, where in the decision making process, determines the weighting value for each alternative attribute, followed by a matrix normalization process which is compared with the best alternative ranking process. The results of the research carried out are a system that can help and make it easier to determine the priorities of farmers in the Kayen forest area who are entitled to receive RDKK subsidized fertilizer, with the right target in terms of selecting from the ranking results of the best alternatives.

Student’s Willingness to Pay for Degree Program Based on Attributes

ABSTRACT Higher education offerings are evolving, and institutions are challenged with providing a grouping of services, or attribute set, with the highest value to students. Widening course offerings may present additional financial challenges to higher education institutions if the magnitude of the value of specific course attributes is unknown. In this study, students were surveyed to determine the willingness to pay for degree program attributes with respect to amount of time and location commitment, university reputation, degree program reputation and instructor reputation. Using a choice-based approach, marginal utilities are calculated along with willingness to pay measures for each variable. Results suggest that the largest premiums occur when time and location commitments are minimized, followed by a solid university reputation. Implications for higher education institutions may allow for customized pricing policies and efficient course offerings based on demand for the most valued structure of online delivery modes, and reputations of degree programs, instructors, and the institute of higher education. Course offerings could then be tailored to balance student demand and institutional resources.

The effect of pricing policies on students’ use of university canteens

University canteens play an important role in academic life; they not only allow students to benefit from subsidised food services and meals at lower prices than those commonly available at other local eateries but also affect other aspects, such as students' health, social relationships and academic achievement. Therefore, any intervention that changes the conditions of food service delivery, such as a pricing policy, is also expected to influence students' behaviours and academic life. Using a quasi-experimental design and a difference-in-differences approach applied on data from an Italian university, this study aims to evaluate the impact of an income-based pricing policy on students' frequency of using university canteens and their meal choices. Results show that users who experienced a meal price increase significantly reduced their use of university canteens. Given the role of universities in driving young adults' behaviours, especially in the transition from living at home to independent living, in which they become responsible for food planning, preparation and choices, an evaluation of such policies is crucial – even for minimal price changes – not only because of economic and health implications but also because of their effects on students’ academic life and well-being.

Research on Hotel Room Pricing and Cancellation Policy Strategies Based on Consumer Cancellation Behavior

Research on Hotel Room Pricing and Cancellation Policy Strategies Based on Consumer Cancellation Behavior

Economic impacts of power-to-liquid fuels in aviation: A general equilibrium analysis of production and utilization in Germany

The aviation industry faces an urgent need to adopt sustainable aviation fuels for significant decarbonization. Power-to-Liquid (PtL) fuel is considered a potential game changer, but questions remain about the wider economic impacts of introducing PtL fuel in the aviation sector. This paper examines the economic impacts of introducing PtL fuel blending quotas along with a price policy consisting of a kerosene tax and PtL fuel subsidies for the case of Germany. Based on a detailed supply chain analysis, we apply a social accounting matrix and a computable general equilibrium model to take into account both, the production and utilization perspectives of PtL jet fuel. Our results show that the influence of low blending quotas is mainly limited to the aviation sector, with a 10 % blending quota increasing consumer prices by 7.9 % and reducing aviation industry output by 3.1 %. When quota levels increase, however, the effects go beyond the air transport system. On inter-sectoral level, we identify three main patterns: First, industries that substantially contribute to the PtL fuel supply chain, such as metal products and electrical equipment, see increasing levels in both, domestic production, and imports. Second, aviation upstream industries like transport infrastructure and aircraft production see reduced domestic production and imports. Third, aviation downstream industries, such as delivery services and travel agencies, see substitution effects, where imports partly replace domestic output. Macroeconomic indicators are affected negatively by the quota scenarios, but the relative impact is low as the maximum decrease in the gross domestic product (GDP) does not exceed 0.35 %. PtL fuel production subsidies can largely mitigate the decrease in aviation demand but come at the cost of a stronger reduction in the GDP and government income. Moreover, the sensitivity analysis emphasizes that various assumptions and parameters, such as the cost projections of PtL fuel, import options, and elasticities of demand, affect the intensity of economic consequences. Our analysis implies the trade-offs of policymaking between sectoral and macroeconomic interests in the context of sustainable fuels. The main contribution of this study is the investigation of the broader economic effects resulting from the adoption of PtL fuels in aviation. In particular, the production as well as the utilization perspective are considered simultaneously in this study.

Impact of New York City Cigarette Floor Price Policy on Reducing Smoking Disparities.

In 2017, New York City (NYC) passed a minimum floor price law (MFPL) to raise the minimum price of a pack of cigarettes to $13.00. Evaluation of the MFPL in NYC is limited and has yet to examine its potential as a proequity policy. Data (n = 20 241; prepolicy n = 15 037, postpolicy n = 5204) were obtained from the New York State Adult Tobacco Survey, a quarterly repeated cross-sectional survey. Using the Difference-in-Differences approach, we compared changes in reported cigarette prices, cigarette consumption, and smoking status among NYC residents before and after policy implementation to changes in the same outcomes among residents in the rest of the state (ROS) over the same period. For some smokers, cigarette price increased in NYC for the postpolicy period; moreover, prices increased more in NYC than in ROS. NYC smokers who reported higher income, more education, or White or "Other" race, reported a bigger price increase than their ROS counterparts. Cigarette consumption decreased more in the postpolicy period for people in the ROS, in general and among certain groups. Everyday smoking status decreased similarly in both NYC and ROS, whereas someday smoking status decreased primarily in the ROS during the analysis period. Cigarette prices in NYC increased after the 2017 MFPL; these increases were greater than those occurring elsewhere in the state, suggesting the policy might be a factor in the change. However, the increases were concentrated among relatively higher-priced purchases, and groups with lower smoking prevalence. Changes in smoking status and cigarette consumption did not correspond to study hypotheses. This study provides an empirical analysis of a real-world policy in tobacco control. It examines the potential of the MFPL in NYC as a proequity policy. Findings extend the current MFPL literature and suggest that they may be able to raise cigarette prices for some purchases, but also may have a limited impact on smoking behaviors.

Price effects of residents' consumption carbon emissions: Evidence from rural and urban China

Price policy applied to specific products may mitigate consumption carbon emissions (CCE). Nevertheless, the extent to which price effects, such as carbon taxes, differ across income groups and between rural and urban areas in China remains uncertain. With unbalanced provincial panel data from 1999 to 2020, we estimated the demand elasticities of eight major groups of consumer goods and services across income groups separately in rural and urban areas of China, using the Quadratic Almost Ideal Demand System (QUAIDS) and the Exact Affine Stone Index Implicit Marshallian demand system (EASI) in this study. The estimated price elasticities were then used to predict the impact of different price policies on CCE. The results show that taxing the wealthiest individuals and subsidizing the poorest individuals in both rural and urban areas have a beneficial impact on the reduction in CCE. Moreover, expanding transfer payments can further facilitate reductions in CCE. Our findings suggest that achieving CCE equality can be realized through intra-urban and intra-rural transfers, as well as urban-rural transfers achieved by taxing urban residents and subsidizing rural residents.

Cloud storage cost: a taxonomy and survey

Cloud service providers offer application providers with virtually infinite storage and computing resources, while providing cost-efficiency and various other quality of service (QoS) properties through a storage-as-a-service (StaaS) approach. Organizations also use multi-cloud or hybrid solutions by combining multiple public and/or private cloud service providers to avoid vendor lock-in, achieve high availability and performance, and optimise cost. Indeed cost is one of the important factors for organizations while adopting cloud storage; however, cloud storage providers offer complex pricing policies, including the actual storage cost and the cost related to additional services (e.g., network usage cost). In this article, we provide a detailed taxonomy of cloud storage cost and a taxonomy of other QoS elements, such as network performance, availability, and reliability. We also discuss various cost trade-offs, including storage and computation, storage and cache, and storage and network. Finally, we provide a cost comparison across different storage providers under different contexts and a set of user scenarios to demonstrate the complexity of cost structure and discuss existing literature for cloud storage selection and cost optimization. We aim that the work presented in this article will provide decision-makers and researchers focusing on cloud storage selection for data placement, cost modelling, and cost optimization with a better understanding and insights regarding the elements contributing to the storage cost and this complex problem domain.