Publication Date:
2012-06-16
Description:
We present a case study of price optimization applied to forecourt retail of motor fuels. The context of the pricing problem is introduced and the technical approach to demand modelling and price optimization is reviewed. We then present a detailed analysis of the results of a trial of price optimization software at a USA fuel retail network. We demonstrate a statistically significant increase in weekly gross profit dollars resulting from the application of price optimization. We show further that this was obtained with greater control of competitive price position and without a statistically significant loss of volume.
Print ISSN:
1471-678X
Electronic ISSN:
1471-6798
Topics:
Mathematics
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