A Price Sensitivity Based Intelligent Pricing System for Global E-commerce

Abstract

Modanisa is a global E-commerce company which provide modest fashion products. Since each country has different currency and different economic conditions, purchasing capacity of the residents change. As a result, the price that the market is willing to pay vary among the countries. Price sensitivity is the degree to which demand changes when the cost of a product or service changes. Price sensitivity is commonly measured using the price elasticity of demand, which states that some consumers won't pay more if a lower-priced option is available. In this study, a decision support system is proposed based on price sensitivity of products. To this end, first previous data is processed to obtain the price sensitivity. At the second step, a mathematical model, which aims to maximize the profit, is proposed. In order to show the efficiency of the approach a mathematical model is also provided.