pricing

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Pricing

The process of an issuer determining the appropriate price of a new issue. That is, the issuer prices when it figures out what coupon rate to promise for a bond or price at which to issue a stock. This can be complex because pricing too far in one direction means the issue will not sell while too far in the other direction raises the cost of funds too high.

pricing

The determination of the price at which stock will sell or the yield at which bonds will sell as new issues. If the price is set too high or the yield is set too low, the issue will not sell out. If the price is set too low or the yield is set too high, the issuer will pay more than necessary in dilution or interest to sell it.

pricing

the decision-making process involved in setting a PRICE for a good or service. For most products, pricing decisions cannot be made in isolation but must consider all aspects of the MARKETING MIX, prices of the firm's related products, competitors'prices, product COSTS, DEMAND and the firm's PRICING OBJECTIVES. See PRICING POLICY, PRICING METHODS, PRICE-QUALITY TRADEOFF, BYPRODUCT PRICING, PRODUCT LINE PRICING, CAPTIVE PRODUCT PRICING, OPTIONAL EXTRAS PRICING, GEOGRAPHICAL PRICING, PSYCHOLOGICAL PRICING, BUNDLED PRICES, EVERYDAY LOW PRICES, PRODUCT POSITIONING, CONSUMER SURPLUS, VALUE CREATED MODEL.
References in periodicals archive ?
Constellation considers the following as threshold criteria for Price Optimization solutions:
Connecticut is the 16th state to prohibit the practice of price optimization.
The National Association of Insurance Commissioners (NAIC) said in an email to Investment Advisor that the lack of a "uniform definition of price optimization" is an issue it is dealing with, although it added, "It is expected that the NAIC will provide a definition of price optimization and adopt a recommendation to states about what is considered to be unfairly discriminatory.
One could argue that explicit regulation regarding price optimization is unnecessary, given that most states have language in their insurance law prohibiting rates that are "inadequate, excessive, and unfairly discriminatory.
Indeed, based on the success Van's has had with price optimization, Cannon is eager to explore the benefits of Revionics' promotion capabilities as well.
Price optimization tools help retailers set the right price at the time an item is added to the mix.
The bottom line is that it is not a tradeoff between relying on the business knowledge of the people who are in the trenches and using price optimization software," says Todd P.
The improved visibility and reliability of price optimization can reduce reliance on long-term contracts to provide stability in complex markets.
Contributing to Revionics market-leading position is its unique ability to deliver life cycle price optimization solutions - base pricing, promotion, and markdown planning and optimization - to a broad range of retailers of all sizes, tier one, two and three.
Under the price optimization methodology, insurance companies can use a vast range of non-cost based factors as a basis for increasing premiums.
The recession has been a boon for price optimization vendors, as more and more retailers look to them to help develop new pricing strategies for cash-strapped consumers.