Abstract
This research objective is to determine the optimal price break points for nblock tariff, because comparing nonlinear pricing with uniform pricing on the basis of profit, nblock tariff outperforms twopart tariff, all unit discount price schedule, and uniform pricing. Although the merits of nonlinear pricing are well documented, the attempt to practice the non-linear pricing in medical service sector has been relatively rare. The determination of the parameters under nblock tariff is the interesting decision making agenda for marketers. Under nblock tariff, the marketers should decide the optimal price break points and the optimal marginal price for each price zone. The results can be summarized as follows: The researchers found that mixture model can be the feasible methodology for determining the optimal number of nblock tariff and identifying the optimal segmentation criteria. We demonstrate the feasibility and the superiority of the mixture model by applying it to the database of medical examination. The results appear that the number of patients per month can be the optimal segmentation variable. And 6block tariff is the optimal price break for this medical service.