Research On Pricing Model Of Photo-finishing Service

Technologies in consumer electronics are developing with the improving quality of modern life. Conventional film cameras have been replaced by the new digital cameras. The transition from film-based printing to the modern digital printing is rapid. The photo printing service, which is based on the conventional store-based business, has been greatly influenced by the Internet e-commerce. Today, various Internet-based digital photo printing services joined the competition with the conventional store-based photo printing business and thus the potential profit in this type of business decreased significantly. Due to various undetermined factors in the prospects and costs of the photo printing market, the pricing model is very crucial to the performance of printing service providers'marketing strategies.This thesis is based on a detailed analysis and research about the pricing model of N Company– a current photo printing service provider. All the studied cases are based on the company's real business cases. Market related study and analysis were conducted under the cooperation with other departments in N Company. A new pricing model for the photo printing service, based on industrial engineering theories, pointing out the importance of matching different prices for different product properties, using a combined quantitative and qualitative analysis and priority-based leveling method, to improve the key performance indices of the pricing model.A Monte Carlo simulation method has been developed to analyze the pricing model of five-inch photo printing service. Through a series of"what-if"loop calculation, different probability results can be calculated for various undetermined information. This method provides a more comprehensive and detailed analysis which improves the objectivity and scientific level of the results, thus enhances the quality of pricing service for N Company.