Fuzzy Expert Pricing Systems and Optimization Techniques in Marketing Science

Abstract

Despite the advancement in the mathematical models for solving and modeling marketing problems, there exists gap between model predictions and market reality. Fuzzy logic bridges this gap by providing marketers with the opportunity of combining robust human experts in the form of linguistic rules to formulate a knowledge-base. These rules are systematically developed into a marketing tool which provides intelligent pricing decision support for marketers in a dynamic and competitive environment. In this paper, these expert pricing systems which are designed and developed to help businesses in pricing decision-making are examined. Price-Strat, FuzzyPrice, and exPrice expert pricing systems are compared and discussed. These three expert pricing systems are explored along with their fuzzy development approach, effectiveness, and attributes in pricing products and services.