OpenTide China’s Pricing Decision-making Support System 2.0 for Digital Industry in China

The purpose of this research is to develop a comprehensive pricing decision-making support system that marketers in digital industry can use to set price level and quantity for digital products including mobile phone, TV, computer, mp3 player and monitor. TheOpenTide China’s pricing Decision-making Support System (OTC’s PDSS) consists of the price response function for each product, the promotion response function, the cost function, mixture modeling, Kane’s regency modeling and Brian’s competitive algorithm. Then we have applied the OTC’s PDSS to the digital industry and yielded the profit maximization price point, revenue maximization price point, and the predicted quantity level for each week for each product category.