Product Demand Forecasting and Dynamic Pricing considering Consumers’ Mental Accounting and Peak-End Reference Effects

We introduce a demand forecasting model for a monopolistic company selling products to consumers with double-entry mental accounting, which means consumers experience pleasure when consuming goods or service and feel pains when paying for them. Moreover, as the monopolist changes prices, consumers form a reference price that adjusts an anchoring standard based on the lowest price that they perceived, namely, the peak-end anchoring. We obtain the steady state prices under three different payment schemes for two- and infinite-period. We also analyze the relationship between these steady prices and maximal profit and compare the steady state prices of different payment schemes by changing the double-entry mental accounting’s parameters through numerical examples. The proposed model is computationally tractable for demand forecasting of realistic size

Product Demand Forecasting and Dynamic Pricing considering Consumers' Mental Accounting and Peak-End Reference Effects

We introduce a demand forecasting model for a monopolistic company selling products to consumers with double-entry mental accounting, which means consumers experience pleasure when consuming goods or service and feel pains when paying for them. Moreover, as the monopolist changes prices, consumers form a reference price that adjusts an anchoring standard based on the lowest price that they perceived, namely, the peak-end anchoring. We obtain the steady state prices under three different payment schemes for two-and infinite-period. We also analyze the relationship between these steady prices and maximal profit and compare the steady state prices of different payment schemes by changing the double-entry mental accounting's parameters through numerical examples. The proposed model is computationally tractable for demand forecasting of realistic size

Long Distance Bus - Yield Management

Trabalho de projeto de mestrado, Engenharia Informática (Interação e Conhecimento) Universidade de Lisboa, Faculdade de Ciências, 2020No âmbito da cadeira de Dissertação do 2º ano de Mestrado em Engenharia Informática, especialização em Interação e Conhecimento, na Faculdade de Ciências da Universidade de Lisboa, foi realizado o presente documento com o objetivo de relatar o trabalho realizado no projeto Long-Distance Bus – Yield Management (YM) na empresa Card4B - Systems, S.A. Este projeto, tal como o nome sugere, está diretamente relacionado com transportes de longo curso, mais especificamente com os autocarros, YM e tarifas dinâmicas nos transportes rodoviários de longo curso. Ao longo deste documento cada conceito será detalhadamente estudado e descrito. YM tem sofrido grandes mudanças ao longo dos últimos anos, sendo que a maioria dos mercados passou a desenvolver e a aplicar técnicas e estratégias cada vez mais sofisticadas. A indústria de autocarros de longo curso apenas recentemente passou a aplicar estratégias de YM mais inteligentes e dinâmicas, existindo por isso poucos estudos e trabalhos disponíveis nesta indústria, daí o objetivo desta dissertação ser estudar bem o meio e soluções, a fim de perceber como aplicar a estratégia e qual a melhor forma de o fazer. O presente documento faz a análise de todas as etapas do processo de aplicação de YM, desde o estudo do sistema e criação de novas ferramentas de gestão, até à sugestão de novos módulos e de uma nova arquitetura. De uma forma sucinta o trabalho pode ser dividido em quatro etapas principais. A primeira etapa consiste em estudar o sistema, que atualmente se encontra em funcionamento em empresas de autocarros de longo curso, com o intuito de perceber e identificar quais as suas limitações e quais as alterações que este precisa de enfrentar. A segunda etapa é a de estudo de ferramentas e soluções existentes, com o objetivo de poder criar uma ferramenta (aplicação Web) que ajude na modernização e gestão do sistema YM já existente, a fim de poder geri-lo e integra-lo, com maior facilidade, com as novas alterações que se pretendem introduzir. São também realizados o estudo e o levantamento de novos fatores a introduzir no YM, mais especificamente no cálculo de preços, com a finalidade de ter as ofertas mais inteligentes e atualizadas. Por fim, com base no estudo realizado e nas ferramentas criadas, é feita a sugestão de uma nova arquitetura a aplicar no sistema. Com este trabalho pretende-se, no futuro próximo, integrar todo o conhecimento desenvolvido e adquirido e ferramentas criadas no sistema real de uma empresa de autocarros de longo curso, tornando a gestão mais simples e os preços mais dinâmicos.Within the scope of the Dissertation module of the 2nd year of the Master in Informatics Engineering, specialization in Interaction and Knowledge, at the Faculty of Sciences of the University of Lisbon, this document reports the work carried out under the Long-Distance Bus project - Yield Management (YM) at Card4B - Systems, SA. This project, as the name suggests, is directly related to long-distance transports, more specifically buses, YM and dynamic road fares, concepts that will be explored further in detail throughout the report. YM has undergone major changes over the past few years, most markets have started to develop and apply increasingly sophisticated techniques and strategies. The long-distance bus industry has only recently started to apply more intelligent and dynamic YM strategies, consequently, there are few studies and works available about YM in this industry, hence, the objective of this dissertation is to study the environment and solutions in order to understand how to apply the strategy and what is the best way to do it. This document goes through an analysis of all stages of the YM application process, from studying the current system and creating new management tools, to suggesting new changes and architecture. In general, the work can be divided into four main stages. The first step is to study the system, which is currently operating in long-distance bus companies, in order to understand and identify what its limitations are and what changes it needs to face. The second step is to study existing tools and solutions, in order to be able to create a tool (Web application) that helps in the automation of the existing YM system, and to be able to manage it and integrate it more easily with the new changes to be made. The study and survey of new factors to be introduced in YM are also carried out, more specifically in the calculation of prices, to have the most intelligent and updated offers. Finally, based on this study and on tools created, the suggestion of a new architecture to be applied in the system is carried. This work paves the way to, in a near future, integrate all the developed and acquired knowledge and tools created, in the real system of a long-distance bus company, making management simpler and prices more dynamic

Financial Management Strategies for Sustaining Small Entertainment Businesses

Lack of effective financial management control strategies results in many small business entertainment owners (SBEOs) failing within their first 5 years of operations. Without strategies to develop and maintain adequate financial management controls, SBEOs may lose market share and potentially go bankrupt, which would result in the loss of jobs and income for employees. Grounded in the mental budgeting theory, the purpose of this qualitative multiple case study was to explore financial management strategies successful SBEOs use to improve productivity and profitability to sustain business operations beyond 5 years. The participants comprised 4 successful SBEOs in Northern Virginia who effectively used financial management strategies to improve productivity and profitability to sustain their businesses beyond 5 years. Data were collected from semistructured, face-to-face interviews, and company documents. Thematic analysis and Yin\u27s 5-step process were used to analyze the data. Three themes emerged: financing and financial management strategy, implementation of accounting and business management software, and diversifying income resources. A key recommendation is for SBEOs to develop a financial tracking system to ensure accounts are kept up to date. The implications for positive social change include the potential for SBEOs to increase employment rates, increase personal incomes, and improve the communitiesâ economic health and unity among established entertainment companies