SHS Web of Conf.
Volume 92, 2021The 20th International Scientific Conference Globalization and its Socio-Economic Consequences 2020
|Number of page(s)||6|
|Section||Behavioral Economics and Decision-Making|
|Published online||13 January 2021|
The Influence of Sensitivity Analysis on ohe Process of Price Decision Making and Pricing of the Company
University of Zilina, Faculty of Operation and Economics of Transport and Communications, Department of Economics, Univerzitna 1, 010 26 Zilina, Slovakia
* Corresponding author: firstname.lastname@example.org
Research background: An integral part of the existence of every company is the constant making of various decisions that affect the company and its surroundings on a global scale. These decisions include decisions about price, which is a key element of the company’s interaction with its surroundings. In the conditions of globalization, price is a key factor in the competition, and price decisions must be made by the company very carefully and their selection is not easy. Sensitivity analysis helps companies choose the best options and steps in the price decision making, which will ultimately affect the process of pricing.
Purpose of the article: The purpose of this work is to point out the importance of sensitivity analysis as a tool for simplifying price decision making and to perform this analysis on a model example of a company.
Methods: Methods of analysis and research of the issue were used in the paper. Induction and deduction methods were also used to help provide a comprehensive picture of sensitivity analysis.
Findings & Value added: The result of this work is, in addition to a general overview of the sensitivity analysis in price decision making, also the specific procedure and the results of the sensitivity analysis and recommendations for the company resulting from these results. Based on the created instructions, companies can make clear pricing decisions that will be of the greatest benefit to them.
Key words: gross profit / price decision making / pricing / sensitivity analysis
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Current usage metrics show cumulative count of Article Views (full-text article views including HTML views, PDF and ePub downloads, according to the available data) and Abstracts Views on Vision4Press platform.
Data correspond to usage on the plateform after 2015. The current usage metrics is available 48-96 hours after online publication and is updated daily on week days.
Initial download of the metrics may take a while.