1. A new geographical pricing model within the principle of geomarketing-mix
- Author
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Martine Pelé, Jérôme Baray, Institut de Recherche en Gestion (IRG), Université Paris-Est Marne-la-Vallée (UPEM)-Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12), and Baray, Jérôme
- Subjects
IRG_AXE3 ,Supply and demand ,0502 economics and business ,optimized location models ,morphological analysis ,Product (category theory) ,algorithm pricing ,050207 economics ,Location ,Geomarketing ,pricing strategy ,Industrial organization ,geomarketing-mix ,Marketing ,Service (business) ,Geographical pricing ,big data in marketing ,05 social sciences ,artificial intelligence ,spatial clustering ,Spatial clustering ,[SHS.GESTION]Humanities and Social Sciences/Business administration ,050211 marketing ,Business ,[SHS.GESTION] Humanities and Social Sciences/Business administration ,geopricing - Abstract
International audience; This article introduces a new model which aims at spatially optimizing the price of a product or service by considering supply and demand features, including their geographical location. Introducing the concept of a geomarketing-mix, factorial analysis and fuzzy clustering can be employed to automatically detect business and strategic opportunities. The method is applied to the French secondhand car market. By so doing, it is possible, first, to identify geographic areas that are typical of a certain supply and, second, to specify the optimal prices and types of vehicles for sale in these areas in view of a given marketing strategy.
- Published
- 2020