A Study on the Customer-based Pricing Approach for Railway Fare of Express Trains

Kim,, G. , & Sung-Wook, K. (2021). A Study on the Customer-based Pricing Approach for Railway Fare of Express Trains. East Asian Journal of Business Economics, 9(4), 93-102, https://doi.org/10.20498/eajbe.2021.9.4.93

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Abstract

Purpose – This study attempted to examine the theory and spPurpose – Among the various pricing approaches that can be used to set fares for express trains, this study explores a method of utilizing a customer-based pricing approach. The purpose of this study is to figure out how to apply the customer-based pricing approach to setting fares for new railway services using express trains. Research design, data, and methodology – This study was conducted through a literature review and case studies. In the literature review, we performed an overview of three approaches to pricing and then examined the customer-based pricing approach and the methods of its application. In the case studies, we investigated how a customer-based pricing approach can be applied to determining the fares for railway services. Result – There have also been studies using a customer-based pricing approach to set railway service rates, which have applied the concepts of customer-based pricing such as demand, elasticity, value and willingness to pay. The customer-based approach can be actively used in conjunction with other pricing approaches for setting fares of new railway services. Conclusion – This study demonstrates that a customer-based pricing approach can be useful when making decisions about railway fares. By applying a customer-based pricing approach to setting fares for new railway services using express trains, railway operators can utilize new service rates and increase the profitability of the railway business.

keywords: Railway Service, Customer-based Pricing, Demand, Willingness to Pay

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Article Contents

Vol.9 No.4

A Study on the Customer-based Pricing Approach for Railway Fare of Express Trains

Abstract

Reference

East Asian Journal of Business Economics