- Series Information
- List of Figures
- List of Tables
- List of Boxes
- List of Contributors
- Why Are Prices Set the Way They Are?
- Airline Pricing
- Electric Power Pricing
- Health Care Pricing in the United States: The Case of Hospitals
- Pricing in Restaurants
- Pricing of On-line Display Advertising
- Consumer Credit Pricing
- Wireless Services Pricing in the United States
- For What IT’s Worth: Pricing Internal IT Services
- Television Advertisement Pricing in the United States
- Pricing in the Cruise Line Industry
- Less-than-Truckload Pricing
- Pricing in the North American Protein Industry
- Wine Pricing in the United States
- Pricing and sales practices at the Grand Bazaar of İstanbul
- Price Theory in Economics
- Models of Demand
- Game Theory Models of Pricing
- Behavioral Issues in Pricing Management
- Customized Pricing
- Nonlinear Pricing
- Dynamic List Pricing
- Sales Promotions
- Markdown Management
- Revenue Management
- Auction Pricing
- Services Engineering: Design and Pricing of Service Features
- Pricing in Business-to-Business Contracts: Sharing Risk, Profit, and Information
- Pricing and Inventory Management
- Structuring and Managing an Effective Pricing Organization
- Global Pricing Strategy
- Using Lean Six Sigma to Improve Pricing Execution
- Mastering your Profit Destiny in Business-to-Business Settings
- Current Challenges and Future Prospects for Pricing Management
Abstract and Keywords
Services engineering involves the virtual or operational modification of an underlying service. Virtual modifications are real (non-financial) options that affect the fulfilment or consumption of a service. Service providers can use them to mitigate supply or demand risk. Operational modifications involve adding (bundling) or removing (unbundling) ancillary services from core services. This article is organized as follows. Section 28.2 discusses virtual service modifications, a variety of real options that improve profits by segmenting customers. These include fulfillment options, consumption options, and real options for access services. Section 28.3 investigates operational service modifications. These include bundling, unbundling, and versioning. Section 28.4 discusses ways to apply services engineering to revenue management and customer relationship management, while Section 28.5 concludes.
Guillermo Gallego is a Professor at the Industrial Engineering and Operations Research Department at Columbia University and a world-renowned expert in pricing optimization, revenue management, inventory theory, and supply chain optimization. He has published over 60 papers in operations research, management science, and pricing journals including seminal papers in Supply Chain, Inventory Theory, and Dynamic Pricing. His graduate students are associated with prestigious universities.
Catalina Stefanescu is an Associate Professor and the Director of Research at the European School of Management and Technology (ESMT) in Berlin. Prior to joining ESMT, she was Assistant Professor of Decision Sciences at the London Business School. She received her PhD and MS in Operations Research from Cornell University, and her BS in Mathematics from the University of Bucharest.
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