A systematic framework has been developed to determine the optimal price of a completely new (or existing but improved) chemical product that is being launched (or relaunched) in the presence of a competing product. It has four elements. The first is a pricing model derived from a utility function with constant elasticity of substitution. It accounts for consumers' awareness of the product under consideration and consumer preferences. The second is a set of relationships relating the consumer preferences and the relevant sales data available to a relaunched product to the parameters of the pricing model. In the absence of sales data for a completely new product, the third element is a set of heuristics for choosing a pricing strategy and estimates of the pricing model parameters. The optimal price is finally determined in a profit maximization problem subject to the market size as well as any other constraints. This pricing framework allows simultaneous optimization of product quality and price using product specifications as design variables. It is illustrated with an example on energy drinks. © 2018 American Institute of Chemical Engineers AIChE J, 64: 2462–2471, 2018
Time flies so quickly, two-year MPhil study in HKUST is completed. I have to thank many people who gave me great help in this MPhil Program. Firstly, I would like to express my greatest gratitude to my supervisor, Prof. Ka Ming NG, who gave me great support and guidance throughout the years. Prof. Ka Ming NG encouraged me and provided me valuable suggestions on how to organize this research and how to tackle the problems that I encountered. Moreover, Prof. Ka Ming NG helped me to find an internship in NAMI, it was a precious chance for me to work in a well-developed chemical laboratory. I was able to familiar machines and equipment and learn the process flow for the chemical product design. I would like to thank Dr. Kelvin, Ka Yip FUNG as an advisor during this two year MPhil study. I sincerely appreciated his critical comments and suggestions he made on this research. Thanks to his time and patience in guiding me how to manage the research and organize the thesis and paper. I also want to thank my friend Patrick Tsang suggest me to take this program, he helped me to adapt the new environment in HKUST quickly. My fellow classmates and colleagues gave me advice and ideas in this research. They were very supportive and sincere when I was in the troublesome time. I am also grateful for the support and trust given by Prof. Mitchell M. TSENG. And my sincere gratitude also goes to Ms. Wendy YAU, Louise YAP and Ms. Jenny CHAN for their continuous help in all the administrative procedures to complete this study. Last but not least, I would like to thank my family members, because of their love and care, I treasure every moment in my life. I would like to thank my husband Matthew SIU for his love and support that makes me feeling safe and fulfill in the world. In this two-year MPhil program, I have learnt to integrate the knowledge that I have acquired in the courses and previous working experience into this research. It has broadened my horizon in the product design projects.
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