Use of the analytical network process to identify and prioritize determining factors in the prices of bitumen in Iran

Mansoureh Alighol; Aida Ghahremani

Mansoureh Alighol Islamic Azad University, Tehran, Iran.
Aida Ghahremani Islamic Azad University, Tehran, Iran.

Keywords: Price, internal factors, external factors, analytical network process

Abstract

Pricing is an important and largely neglected tool in industrial marketing. Research on business-tobusiness marketing represents the importance of pricing for firm’s profitability and long term survival. However, setting a competitive price is highly demanding because of the complexity and wealth of influential factors. As with any strategic decision, pricing strategy is influenced by two types of factors, internal and external factors. Identification and relative weight of internal and external factors that influence Iran bitumen pricing strategies, is the main purpose of the paper. Qualitative and quantitative methods used to determine internal and external factors, using ANP method to rank them. By interview with managers and questionnaire, the internal and external factors were identified and weighted by ANP method. Findings indicate that bitumen price by the most part depends on global crude oil price, supply/demand of external market, political environment such as sanction, competitive intensity, exchange rate fluctuation, vacuum bottom price (cost of production input), international experience. Environmental factors influence pricing strategies managers employ a tiny amount more than market factors. Due to environmental conditions and changes pricing strategies should be regularly adjusted.

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Author Biographies

Mansoureh Alighol, Islamic Azad University, Tehran, Iran.

Department of Business Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran.

Aida Ghahremani, Islamic Azad University, Tehran, Iran.

Executive Master of Business Administration, Central Tehran Branch, Islamic Azad University, Tehran, Iran.

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