Determining price is one of the toughest things a marketer has to do, our price elasticity solution helps in understanding the relationship of how responsive a customer demand is for a product based on its price, be leveraging point of sale data.
- Price elasticity of demand = Percentage change in quantity demand / Percentage change in price
- Using data analysis, compare and evaluate the effect of advertising on the responsiveness of the consumers to pricing.
- In the growth phase of a product life cycle, the product will tend to be fairly inelastic, however, as the product moves towards maturity, the elasticity will increase. Analytics help in gauging the sensitivity of a product ‘s price elasticity.
- Big Data assists in defining pricing strategies to grow and maintain market share
- Use analytical data to forecast the impact of a change in price in sales volume and revenue
- Bundle Pricing strategies derived from analytical data reduces the volatility of consumer’s willingness to pay.
- As a seller using analytical data, discover opportune moments to maximize profits using price discrimination.