Development of pricing models for intangible services based on conjoint analysis and mathematical programming: A case study about the design of credit card services in China

Emmanuel Fragniere, Francesco Moresino, Nan Zheng

Research output: Chapter in Book/Report/Conference proceedingChapter

1 Citation (Scopus)

Abstract

We propose an aggregate planning model based on integer optimization that combines consumers' perception, market share, and cost-benefit analysis. This model provides a new direction to optimize the design of credit card services. The survey was administered online last summer in China and gathered 237 valid responses. This survey measured several alient attributes of the Chinese credit card market. The study estimated part-worths using the SPSS non-metric conjoint analysis procedure for each respondent and for the entire sample. Finally, the study developed a design by optimizing an aggregate planning model. for instance, the model recommends authorizing an interest-free period of 30 days and using the VISA network. This model enables analysts to design coherent proposals for credit card services as well as to take into account the three elements of Lovelock's Tripod (competition, cost structure, and client's perceived value) when pricing those services.
LanguageEnglish
Title of host publicationProceedings - 2011 Annual SRII Global Conference, SRII 2011
Place of PublicationPiscataway, NJ
PublisherIEEE
Pages653-662
Number of pages10
ISBN (Print)978-1-61284-415-2
DOIs
StatusPublished - Apr 2011
Event2011 Annual SRII Global Conference, SRII 2011, March 30, 2011 - April 2, 2011 - San Jose, CA, USA United States
Duration: 1 Apr 2011 → …

Conference

Conference2011 Annual SRII Global Conference, SRII 2011, March 30, 2011 - April 2, 2011
CountryUSA United States
CitySan Jose, CA
Period1/04/11 → …

Fingerprint

Mathematical programming
Conjoint analysis
China
Intangibles
Credit cards
Aggregate planning
Market share
Integer
Perceived value
Cost-benefit analysis
Consumer perceptions
Analysts
Service pricing
Cost structure

Cite this

Fragniere, E., Moresino, F., & Zheng, N. (2011). Development of pricing models for intangible services based on conjoint analysis and mathematical programming: A case study about the design of credit card services in China. In Proceedings - 2011 Annual SRII Global Conference, SRII 2011 (pp. 653-662). [5958145] Piscataway, NJ: IEEE. https://doi.org/10.1109/SRII.2011.71

Development of pricing models for intangible services based on conjoint analysis and mathematical programming : A case study about the design of credit card services in China. / Fragniere, Emmanuel; Moresino, Francesco; Zheng, Nan.

Proceedings - 2011 Annual SRII Global Conference, SRII 2011. Piscataway, NJ : IEEE, 2011. p. 653-662 5958145.

Research output: Chapter in Book/Report/Conference proceedingChapter

Fragniere, E, Moresino, F & Zheng, N 2011, Development of pricing models for intangible services based on conjoint analysis and mathematical programming: A case study about the design of credit card services in China. in Proceedings - 2011 Annual SRII Global Conference, SRII 2011., 5958145, IEEE, Piscataway, NJ, pp. 653-662, 2011 Annual SRII Global Conference, SRII 2011, March 30, 2011 - April 2, 2011, San Jose, CA, USA United States, 1/04/11. https://doi.org/10.1109/SRII.2011.71
Fragniere, Emmanuel ; Moresino, Francesco ; Zheng, Nan. / Development of pricing models for intangible services based on conjoint analysis and mathematical programming : A case study about the design of credit card services in China. Proceedings - 2011 Annual SRII Global Conference, SRII 2011. Piscataway, NJ : IEEE, 2011. pp. 653-662
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