Price of a commodity or service is one of the most crucial factors that budget-constrained customers consider for making buying decisions. With online options aplenty, consumers weigh all options for optimum profitability and maximum returns before reaching a decision. Hence, price optimization is imperative for retail giants to remain relevant and maintain growth in a fiercely competitive market. They combine demand modeling and ‘what-if’ analysis to strike the right balance between safeguarding the customer wallet and ensuring a fool proof pricing strategy. They also observe and study the impact of pricing strategy on sales and the retailer performance.
Rubiscape uses a proprietary approach for applying various methodologies and datasets, estimating parameters and building the best-fit models for attaining a price-value coherence. The models emerge with a robust strategy to forecast prices that are perceived by customers as value-for-money.
RubiStudio – Data Joiner, Data Exploration
RubiSight – Data Visualizations
Total sales and average weekly spending estimates for each retail sector in Great Britain (in thousand GBP).