DESIGN AND IMPLEMENTATION OF AN AUTOMATED PRICE TAG MANAGEMENT SYSTEM

A detailed understanding of the costs associated with all aspects of the price change process can be valuable for managers. A decision to change a price of a product, like any other economic decision, has costs and benefits. In the area of pricing strategy, managers have developed an extensive understanding of the benefits associated with adjusting prices to changing market conditions. For example, in the grocery industry, studies of price elasticity's, promotion sensitivities, and consumer responsiveness to pricing activity are frequently undertaken by branded manufacturers, retailers, and private companies. Similarly, in industrial markets many firms undertake conjoint or tradeoff analysis to assess the price sensitivity of their customers (Nagle and Holden, 1995).