Price Elasticity

Article archives from the Pricing Pricing Society

Understanding Price Elasticity Models: A Comprehensive Cutting-Edge Guide

Price elasticity models provide valuable insights into consumer behavior and market dynamics. By quantifying the responsiveness of demand to price changes, businesses can develop more effective pricing strategies, optimize promotional efforts, and drive revenue growth with dynamic pricing. Understanding and applying price elasticity concepts empower businesses to make informed pricing decisions in an ever-changing marketplace, as the author explains.

Price Walls and Demand Curves in Pricing Strategies

In this article, the author explains the concept of price walls – psychological price points where small price changes generate significant changes in sales volume and revenue – and why they – as well as understanding what an actual demand curve looks like for a specific product or product, family, or service – are critical components for developing a successful pricing strategy.

By |2022-12-27T22:04:45+00:00December 31, 2022|Price Elasticity, Pricing Analytics, Pricing Articles|0 Comments

Price Elasticities Demystified

While intuitive in theory, price elasticity measurements are often too simplistic in scope for practical use in day-to-day pricing decisions. To make better use of this metric in daily pricing decisions, price elasticity should be assessed considering multiple complex factors, which can only be achieved by applying algorithms in an artificial intelligence/machine learning system environment where the algorithm is programmed to evolve in a dynamic way, as the authors explain.

By |2022-04-08T14:19:40+00:00December 31, 2021|Journal of Professional Pricing, Price Elasticity|0 Comments
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