ONLINE PRICING FOR SMALL MEDIUM ENTERPRISES’ PRODUCTS IN THE EX-LOCALIZATION OF DOLLY SURABAYA

Numerous Small and Medium Enterprises (SMEs) do not have a basic method in pricing decisions. Many times, this decision comes up based on an intuitive probe instead of a detailed analysis. This could lead to marketing problems, which may result in disruptions of financial liquidity. This also applie...

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Autores principales:	Ig. Jaka Mulyana, Ivan Gunawan, Dian Trihastuti, Yehezkiel Prakoso Putra Yunen, Dwi Agustin Nuriani Sirodj
Formato:	article
Lenguaje:	ID
Publicado:	Diponegoro University 2021
Materias:	dual-channel supply chain mathematical model online pricing small medium enterprise Industrial engineering. Management engineering T55.4-60.8
Acceso en línea:	https://doaj.org/article/eb4a1519b47d438fa2c118ce239d41ff
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spelling	oai:doaj.org-article:eb4a1519b47d438fa2c118ce239d41ff2021-11-18T07:23:29ZONLINE PRICING FOR SMALL MEDIUM ENTERPRISES’ PRODUCTS IN THE EX-LOCALIZATION OF DOLLY SURABAYA1907-14342502-151610.14710/jati.16.3.169-176https://doaj.org/article/eb4a1519b47d438fa2c118ce239d41ff2021-10-01T00:00:00Zhttps://ejournal.undip.ac.id/index.php/jgti/article/view/37264https://doaj.org/toc/1907-1434https://doaj.org/toc/2502-1516Numerous Small and Medium Enterprises (SMEs) do not have a basic method in pricing decisions. Many times, this decision comes up based on an intuitive probe instead of a detailed analysis. This could lead to marketing problems, which may result in disruptions of financial liquidity. This also applies to SMEs wishing to sell products through the online channel. They need a proper pricing strategy, considering its different marketing strategies. Sales made through both offline channels (conventional stores) and online channels are known as Dual-Channel Supply Chain (DCSC). It is argued that the pricing decision at DCSC needs to consider consumer preferences in selecting the sales channel. One assumption commonly adopted in the DCSC pricing model is that the lost value if consumers purchase products through online channels. Therefore, the pricing decision for the online channel should be cheaper than the price on the offline channel. This study aims to assist SMEs in the ex-localization of Dolly in Surabaya in determining the price of products to be sold through online channels. Three types of products: batik, chips, and leather shoes were selected as research samples to represent the product groups: craft, fashion, and processed food. This study proposes an optimal online price strategy through experiments with a mathematical model. Model parameters, namely consumer preferences in choosing sales channels, are obtained through surveys. Apart from that, surveys are also used to reveal which platforms consumers are interested in shopping online. Shopee and Instagram were chosen by respondents as the most popular marketplaces and social media for online shopping. Finally, the online prices proposed for the batik product are IDR 82,500-IDR 66,000; chips Rp7,620-Rp6,336; and leather shoes Rp.103,800-Rp82,200.Ig. Jaka MulyanaIvan GunawanDian TrihastutiYehezkiel Prakoso Putra YunenDwi Agustin Nuriani SirodjDiponegoro Universityarticledual-channel supply chainmathematical modelonline pricingsmall medium enterpriseIndustrial engineering. Management engineeringT55.4-60.8IDJ@ti Undip: Jurnal Teknik Industri, Vol 16, Iss 3, Pp 169-176 (2021)
institution	DOAJ
collection	DOAJ
language	ID
topic	dual-channel supply chain mathematical model online pricing small medium enterprise Industrial engineering. Management engineering T55.4-60.8
spellingShingle	dual-channel supply chain mathematical model online pricing small medium enterprise Industrial engineering. Management engineering T55.4-60.8 Ig. Jaka Mulyana Ivan Gunawan Dian Trihastuti Yehezkiel Prakoso Putra Yunen Dwi Agustin Nuriani Sirodj ONLINE PRICING FOR SMALL MEDIUM ENTERPRISES’ PRODUCTS IN THE EX-LOCALIZATION OF DOLLY SURABAYA
description	Numerous Small and Medium Enterprises (SMEs) do not have a basic method in pricing decisions. Many times, this decision comes up based on an intuitive probe instead of a detailed analysis. This could lead to marketing problems, which may result in disruptions of financial liquidity. This also applies to SMEs wishing to sell products through the online channel. They need a proper pricing strategy, considering its different marketing strategies. Sales made through both offline channels (conventional stores) and online channels are known as Dual-Channel Supply Chain (DCSC). It is argued that the pricing decision at DCSC needs to consider consumer preferences in selecting the sales channel. One assumption commonly adopted in the DCSC pricing model is that the lost value if consumers purchase products through online channels. Therefore, the pricing decision for the online channel should be cheaper than the price on the offline channel. This study aims to assist SMEs in the ex-localization of Dolly in Surabaya in determining the price of products to be sold through online channels. Three types of products: batik, chips, and leather shoes were selected as research samples to represent the product groups: craft, fashion, and processed food. This study proposes an optimal online price strategy through experiments with a mathematical model. Model parameters, namely consumer preferences in choosing sales channels, are obtained through surveys. Apart from that, surveys are also used to reveal which platforms consumers are interested in shopping online. Shopee and Instagram were chosen by respondents as the most popular marketplaces and social media for online shopping. Finally, the online prices proposed for the batik product are IDR 82,500-IDR 66,000; chips Rp7,620-Rp6,336; and leather shoes Rp.103,800-Rp82,200.
format	article
author	Ig. Jaka Mulyana Ivan Gunawan Dian Trihastuti Yehezkiel Prakoso Putra Yunen Dwi Agustin Nuriani Sirodj
author_facet	Ig. Jaka Mulyana Ivan Gunawan Dian Trihastuti Yehezkiel Prakoso Putra Yunen Dwi Agustin Nuriani Sirodj
author_sort	Ig. Jaka Mulyana
title	ONLINE PRICING FOR SMALL MEDIUM ENTERPRISES’ PRODUCTS IN THE EX-LOCALIZATION OF DOLLY SURABAYA
title_short	ONLINE PRICING FOR SMALL MEDIUM ENTERPRISES’ PRODUCTS IN THE EX-LOCALIZATION OF DOLLY SURABAYA
title_full	ONLINE PRICING FOR SMALL MEDIUM ENTERPRISES’ PRODUCTS IN THE EX-LOCALIZATION OF DOLLY SURABAYA
title_fullStr	ONLINE PRICING FOR SMALL MEDIUM ENTERPRISES’ PRODUCTS IN THE EX-LOCALIZATION OF DOLLY SURABAYA
title_full_unstemmed	ONLINE PRICING FOR SMALL MEDIUM ENTERPRISES’ PRODUCTS IN THE EX-LOCALIZATION OF DOLLY SURABAYA
title_sort	online pricing for small medium enterprises’ products in the ex-localization of dolly surabaya
publisher	Diponegoro University
publishDate	2021
url	https://doaj.org/article/eb4a1519b47d438fa2c118ce239d41ff
work_keys_str_mv	AT igjakamulyana onlinepricingforsmallmediumenterprisesproductsintheexlocalizationofdollysurabaya AT ivangunawan onlinepricingforsmallmediumenterprisesproductsintheexlocalizationofdollysurabaya AT diantrihastuti onlinepricingforsmallmediumenterprisesproductsintheexlocalizationofdollysurabaya AT yehezkielprakosoputrayunen onlinepricingforsmallmediumenterprisesproductsintheexlocalizationofdollysurabaya AT dwiagustinnurianisirodj onlinepricingforsmallmediumenterprisesproductsintheexlocalizationofdollysurabaya
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ONLINE PRICING FOR SMALL MEDIUM ENTERPRISES’ PRODUCTS IN THE EX-LOCALIZATION OF DOLLY SURABAYA

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