Tag: willingness to pay

Behavioral Economics Powered by Machine Learning and AI Techniques | Pricing Matters

Behavioral Economics Powered by Machine Learning and AI Techniques | Pricing Matters

There is a growing focus among pricing practitioners to use price science to drive pricing decisions. It’s a fabulous trend with many recent innovations in the use of advanced techniques such as machine learning and AI. It is important however to consider behavioral economics because our economic decision making is often shockingly irrational. Naturally, we […]

Machine Learning—a “Next Level” Pricing Element | Paul Greifenberger

Machine Learning—a “Next Level” Pricing Element | Paul Greifenberger

For a pricing strategy to be truly successful, it must be a “win-win-win” for sales, marketing, and finance. This calls for a revenue and margin balancing act consistently performed over time. Vistaar’s SmartQuote  pricing software enables pricing strategies and tactics to efficiently and rapidly adapt as market conditions change. SmartQuote is powered by advanced machine learning techniques […]

Paper: Pricing Best Sellers | Journal of Interactive Marketing

Paper: Pricing Best Sellers | Journal of Interactive Marketing

More reasons why online mass merchandisers are category killersOne of the great pleasures for book lovers of all ages is the opportunity to settle into a comfortable armchair amid the stacks of an expertly curated bookstore and peruse the pages of possible purchases. It’s an old story already that those opportunities are disappearing as online […]

Report: A Pricing Playbook for Emerging Markets | BCG

Report: A Pricing Playbook for Emerging Markets | BCG

Pricing in emerging markets—always tricky to manage because of fluctuating inflation rates, shifting interest costs, and volatile currencies—is becoming even harder for multinational corporations (MNCs) to master. These companies face rising competition, from other MNCs in premium niches and from local giants in middle-market segments, that is squeezing MNCs’ profit margins in many emerging markets. […]

Don’t Chase Pricing Ghosts | Strategic Pricing Solutions

Don’t Chase Pricing Ghosts | Strategic Pricing Solutions

Today is Halloween, but it is no time to be spooked by the challenge of increasing prices to fully capture the value of your products or services.  In nearly every company, opportunities exist to capture more value from select customers or products.  However, those opportunities are often not where you think they are, so do […]

Making Money is the Objective | Strategic Pricing Solutions

Making Money is the Objective | Strategic Pricing Solutions

Retail is an inherently low-margin business.  (If you doubt it, just look at Amazon’s return on sales.) To survive, retailers use many tools to determine how they can sell more to customers and at higher prices.  In recent years, data science has become a much more important part of the retail toolkit.  By analyzing how […]

Get the whole truth, not just anecdotes or opinions | Strategic Pricing Solutions

Get the whole truth, not just anecdotes or opinions | Strategic Pricing Solutions

Last week a friend told me that her sister’s business had overpaid their taxes and without justification the government would not refund the overpayment.  I was skeptical of the story and responded that there is a very clear process for requesting refunds of overpaid taxes or applying them to the subsequent year, and the IRS […]

Paper: Pricing – Time for Science to Replace Gut Instinct | RIS News

Paper: Pricing – Time for Science to Replace Gut Instinct | RIS News

When deployed correctly, pricing optimization solutions are powerful tools that deliver a clear business edge to retailers. Not only are they capable of setting prices for promotional products that consistently hit sell-through goals, but they can also help the entire product catalog sell at full price. But the catch is these sophisticated solutions can only […]

Fire Low Margin Customers as a Pricing Strategy? Not a Good One. | Strategic Pricing Solutions

Fire Low Margin Customers as a Pricing Strategy? Not a Good One. | Strategic Pricing Solutions

A somewhat popular tactic of companies looking to improve their margins is to identify their low-margin customers and fire them. They don’t go Donald Trump on their customers and say “You’re fired.” Instead the companies jack up the prices of those customers to either drive them away or make them profitable. Some companies even erroneously […]

How Our Brain Determines if the Product is Worth the Price | HBS Working Knowledge

How Our Brain Determines if the Product is Worth the Price | HBS Working Knowledge

Are consumers more likely to buy if they see the price before the product, or vice versa? Uma Karmarkar and colleagues scan the brains of shoppers to find out. by Carmen Nobel Think of the last time you went shopping. By the time you decided to buy a product, you knew both what you were […]