There has been an explosion in the availability of data
and computing ability in retail management that has led
to a new desire on the part of managers to implement
demand based management. Demand based management uses
statistical models to predict consumer price response
using historical information. These models can be used
to construct pricing decision support systems for retail
managers. Currently, many firms have begun offering
software to perform price optimization. This article
considers how recent advances in academic research can
contribute to the implementation of these systems, and
in turn consider the new questions likely to be posed by
the developers and users of these new systems. pdf
