International Association of Engineers
One of the most difficult, yet important, issues that a firm must decide is how much to charge for its product/ service. Furthermore, considering the pressure of the developing technologies that shifts the consumers away from traditional distribution channels towards the Internet-based distribution channels, determining the most appropriate pricing strategy becomes a more challenging task. In this paper, a generalized framework is proposed from the perspective of a firm that needs to decide on its pricing strategy for each of the possible market scenario. The framework allows the firm to compute the estimated profit in each scenario and then choose the most profitable one.