Affiliations:
İstanbul Technical University, Industrial Engineering Department, İstanbul, Turkey
Correspondence:
[*]
Corresponding author. Basar Oztaysi, İstanbul Technical University, Industrial Engineering Department, 34367, İstanbul, Turkey, E-mail: oztaysib@itu.edu.tr.
Abstract: Location-Based Systems enable novel business models that can locate a person and send an action or message to him/her. One of the most commonly adopted location-based business models is location-based advertisements. Companies can send customized messages to target customers by using location-based ads. The model is promising since the conversion rate of the customers is high. On the other side, since the customers can be targeted based on their locations and interests, the price of the advertisement should be modeled a dynamic pricing model. In this study, we propose a dynamic pricing model for location-based ads by using the Spherical Fuzzy AHP method.
