Optimizing Pricing Strategies Using Causal Inference and Machine Learning for Multi-Generation Products

Authors

  • Golnaz Adib Department of Engineering Science, University of Tehran, Tehran, Iran Author
  • Mohammad Safaei Department of Engineering Science, University of Tehran, Tehran, Iran Author
  • Elham Karim Zadeh Alumni of Industrial Engineering, Bu-Ali Sina University, Hamedan, Iran Author

Keywords:

Causal Inference, Pricing Strategies, Dynamic Pricing, Market Trends, Customer Retention, Machine Learning, Proactive Pricing

Abstract

In the competitive landscape of technology markets, determining optimal pricing strategies for multi-generation products presents significant challenges. Traditional pricing models often fail to account for the complex interactions between various market factors and customer behaviors. This study introduces a novel framework that integrates causal inference with machine learning to enhance the accuracy and effectiveness of dynamic pricing strategies for multi-generation products. By leveraging causal inference, the framework identifies and quantifies the causal relationships between pricing decisions and their impacts on sales, customer satisfaction, and market dynamics. Machine learning algorithms are then employed to analyze historical data and predict future trends, enabling proactive pricing adjustments. The combined approach not only improves the understanding of underlying market mechanisms but also facilitates more precise and adaptive pricing decisions. Evaluation through extensive simulations and real-world case studies demonstrates that the proposed framework significantly enhances revenue growth, market share, and customer retention compared to traditional pricing models. This research provides a robust, data-driven methodology for optimizing pricing strategies in fast-paced, technology-driven markets.

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Published

2024-07-28

Issue

Section

Articles

How to Cite

Optimizing Pricing Strategies Using Causal Inference and Machine Learning for Multi-Generation Products. (2024). International Journal of Industrial Engineering and Construction Management (IJIECM), 1(1), 44-52. https://www.ijiecm.com/index.php/ijiecm/article/view/11