Business, Management and Accounting
5 years ago

Maximize profits and reduce demand variability with strategic discount setting!

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Philippine Engineering Journal
A Proposal of a Demand Shifting Function to Address the Demand-Capacity Imbalance of Capacity-Constrained Systems that Shift Demand by Discount Setting
Christian John Immanuel S. Boydon, Iris Ann Martinez, Lowell Lorenzo

Paper Summary

This paper suggests that service businesses can make more money by offering discounts during slow times to attract more customers. By doing this, they can balance out the demand for their services throughout the day. The researchers tested this idea at a spa and found that it increased profits and made the number of customers more consistent across different times.

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