Pricing science is the application of social and business science methods to the problem of setting prices. Methods include economic modeling, statistics, econometrics, mathematical programming. This discipline had its origins in the development of yield management in the airline industry in the 1980s, and has since spread to many other sectors and pricing contexts, including yield management in other travel industry sectors, media, retail, manufacturing and distribution.
Pricing science work is effectuated in a variety of ways, from strategic advice on pricing on defining segments for which pricing strategies may vary, to enterprise-class software applications, integrated into price quoting and selling processes.
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Famous quotes containing the word science:
“The present war having so long cut off all communication with Great-Britain, we are not able to make a fair estimate of the state of science in that country. The spirit in which she wages war is the only sample before our eyes, and that does not seem the legitimate offspring either of science or of civilization.”
—Thomas Jefferson (1743–1826)