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

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.