Title: Dynamic pricing using e-coupons

Authors: Rajanish Dass

Addresses: Computer Science and Information Systems Group, Indian Institute of Management Ahmedabad, Vastrapur, Ahmedabad 380 015, India

Abstract: Coupons have been used extensively in the brick and mortar industries like airlines, hotels along with the retail stores, etc. as a means to dynamic pricing by price discrimination. This is often done using discounts in the form of coupons. The electronic world is more suitable for this kind of approach due to the huge information base available with merchants. This paper primarily deals with devising some ways of determining customer groups and the coupon discount values for these groups by solving an optimisation problem. Various experiments were performed to validate the solution obtained and compared with existing ones.

Keywords: price discrimination; dynamic pricing; e-coupons; clustering users; electronic coupons; customer groups; coupon discount values; optimisation; internet marketing; customer profiles; inventory reduction; maximum profit.

DOI: 10.1504/IJIMA.2005.007505

International Journal of Internet Marketing and Advertising, 2005 Vol.2 No.1/2, pp.78 - 91

Available online: 30 Jul 2005 *

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