Brazilian managers are often uncertain about important factors that determine the success of a pricing strategy. When the degree of uncertainty is large and its sources are numerous, apparently simple pricing problems can quickly become unmanageable. The purpose of this paper is to give an account of a procedure, Bayesian analysis, for dealing with that complexity. Using this procedure, complex problems become easier to understand, enabling managers to make better pricing decisions.
price setting; pricing decisions under uncertainty; Bayesian decision theory in pricing strategy; Bayesian approach to pricing decisions