SYSTEM AND METHOD OF DEMAND MODELING AND PRICE CALCULATION BASED ON COMPETITIVE PRESSURE

摘要

A method and apparatus for demand modeling and price calculation based on competitive pressure is provided. Data related to a plurality of products related to a product of interest is collected, along with the number of sales, sales price and one or more product attribute values for each of the products. Conversion factors are used to equivalize the plurality of products relative to the product of interest, and attribute weights characterize product relevance to the product of interest. Based on these factors, a competitor pressure model is generated for the product of interest and describes its estimated variation in demand as a function of its variation in price. The competitor pressure model may be used to evaluate the effect of proposed price changes and correct the proposed price changes by calculating an optimal price.

主权项

1. A method, comprising:
obtaining, for each of a plurality of products related to a product of interest, a number of sales during a selected time period, prices associated with each of the sales, and values for one or more attributes associated with the plurality of products; applying conversion factors for equivalizing the prices and the values with respect to the product of interest and to yield equivalized prices and equivalized values; selecting attribute weights for each of the attributes, each of the attribute weights characterizing a relevance of corresponding one of the attributes to sales of the product of interest; and based on the number of sales, the equivalized prices, the equilavized values, and the attribute weights, generating a competitor pressure model for the product of interest describing an estimated variation in demand for the product of interest as a function of variation in price for the product of interest.