Scenario Planning and Evaluation of Pricing Strategies in the Portuguese Bulk LPG Market

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Scenario Planning and Evaluation of Pricing Strategies in the Portuguese Bulk LPG Market

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Title: Scenario Planning and Evaluation of Pricing Strategies in the Portuguese Bulk LPG Market
Author: Capelo, Carlos; Dias, João Ferreira
Abstract: Portugal has the largest LPG (Liquefied Petroleum Gas) share of primary energy demand in the EU (about 5%). Due to the increasing international cost of LPG in the last years and the high price sensitivity of the consumers the preference for substitute energy sources in new and existing consumers has been increasing. To select the kind of energy, some consumer estimate and compare the total costs while others follow agents (equipment sellers) recommendations. It takes time to build agents perception about the most advantageous source of energy, which is seen as an important resource that drives client resource accumulation and retention. Marketing strategies have to take into consideration some market dynamic effects derived from the accumulation and depletion of these resources. A simple system dynamics model was built, combined with Economic Value Added framework, to evaluate some pricing strategies under different scenarios of LPG international cost.
URI: http://hdl.handle.net/10437/1223
Date: 2004-07


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