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Pricing

247 articles found in this category.

The Relationship of Price and Demand

August 2019 Pricing

For this article, I am going to discuss how we model the relationship between price and demand. Most people have an intuitive understanding that when the price of a good increases, the demand will decrease. Conversely, when the price of a good decreases, the demand will increase. The change in demand according to a change […]

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Strategic Movements August 2019

August 2019 Pricing

Online Grocer Pricing Thrive Market requires a $60 annual fee and offers free shipping for orders over $49. Public Goods requires a $59 annual fee and offers free shipping for orders over $45. Brandless requires a NO annual fee and offers free shipping for orders over $48. All three of these companies focus on house […]

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Can Money Buy Your Morals?

July 2019 Pricing

Classical economics assumes that our rational self-interest will guide our decision making. The first part of that assumption, the “rational” part, was proven to be a premise needing clarification by the work of Kahneman and Tversky in their 1979 paper on Prospect Theory. This seminal work led to an entirely new branch of economics, best […]

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What Are You Doing? Log-Linear Regression

July 2019 Pricing

For this month’s article, I offer an overview of a log-linear regression that I conducted for a client recently. While I find the mathematics and statistics that I used for this project fascinating in and of themselves, I do not want to get bogged down in the actual equations or any distracting minutiae. What I […]

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The New Invisible Hand

July 2019 Pricing

My book The New Invisible Hand will be released at the end of July. This book is for you if you’ve ever struggled to understand how your company should react to different competitive threats enabled by changing technology. You’ll learn how five technological revolutions are upturning entire industries and determining new winners and losers in […]

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Strategic Movements July 2019

July 2019 Pricing

Household Insecticide Pricing Raid, a household insecticide by S.C. Johnson & Son Inc. with roughly 50% U.S. market share, sells for $4.27 per 20 oz can canister ($0.21 per oz).  Procter & Gamble Co. has recently launched Zevo, a competing household insecticide, for $6.97 per 10 oz can canister ($0.70 per oz). Does Zevo warrant […]

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Pricing Dashboard Design

June 2019 Pricing

Executive dashboards are valuable coordination tools. They help pricing teams communicate facts and identify areas deserving executive attention. This is demonstrably clear. Yet, what facts specifically should be on a pricing dashboard? What are the issues that pricing should bring to the attention of their CEOs? To address this question, I asked ten different pricing […]

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Machine Learning for the Masses: Regression Analysis

June 2019 Pricing

Machine learning has become a very popular topic in recent years. However, I fear that most people hear “machine learning” and assume that it must be a very difficult topic to understand. After all, machine learning is a subfield of artificial intelligence, so machine learning must be complex. On the contrary, some machine learning techniques […]

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Strategic Movements June 2019

June 2019 Pricing, Selling

Honey Demand Up, Supply Constant.  Prices? Demand for honey has increased as people perceive it as a healthy alternative to sucrose and fructose from sugar cane, sugar beets, and corn.  Global supplies of honey have been relatively stable according to Apimondia, an international federation of beekeepers.  (Beehive colony collapse challenges ae widespread in many countries, […]

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