Predicting Pricing Strategy from Financial Condition

Abstract

The purpose of this thesis is to determine if pricing strategy for pioneer products in the defense aerospace industry can be predicted using financial ratios. The sample population includes eleven contractors and thirty five contracts. Fifteen ratios were developed from corporate reports or 10K reports for the year of the contract and the three preceeding years. These ratios were correlated to the slope of the price reduction curve for the contracts. The analysis used both standard and stepwise regression methods. A nine variable, linear regression model was developed that is significant in explaining pricing strategy. The model possesses potential to predict pricing strategy but requires additional validation. Keywords: Procurement; Weapon systems.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1986
Accession Number
ADA177467

Entities

People

  • Kurtis J. Mcgrath

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Biomedical
  • C4I
  • Human Systems
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Aerospace Industry
  • Capital Investments
  • Commerce
  • Contractors
  • Contracts
  • Correlation Analysis
  • Department Of Defense
  • Government Procurement
  • Governments
  • Linear Regression Analysis
  • Military Aircraft
  • Money
  • National Security
  • Procurement
  • Regression Analysis
  • Security
  • Standards

Readers

  • Life Cycle Cost Analysis
  • Statistical inference.
  • Systems Analysis and Design

Technology Areas

  • Space