Enhancing Price-To-Win Targeting with Value-Base Pricing : A Bayesian Network Approach
Value Base Pricing (VBP) in the B2B industry is a recognize profit generatorsuported by multiple studies in the theoritical and empirical pricing field.VBP focus on customer’s expectations and not just costs. However, despite its acknowledged benefits value-based pricing can be challenging. In this article we place VBP in Non-zero-sum game conflict negotiation and highlights that VBP is not facilitated in cooperative equilibrium between the buyer and seller. We will present given Tools of pricing negotiations like Price Wining Target (PWT)in the field of Multiple-Choice Criteria Models (MCDM ). We will focus on Analytic Hierarchy Process (AHP) which is used in the field of negociation to enhance decision making but with drawbacks we will identify. We propose then an improvement through deployment of Bayesian Network and PWT hybridification and present an operational application. Baysien Network is a mathematical methodology supported by computer tools.
