From Predicting Market Response to Testing Commercial Decisions Why pricing and promotion intelligence may need to move beyond simply predicting what happens next. Prediction only gets us so farMost pricing technology is trying to answer a perfectly reasonable question: What is likely to happen?If we change the price, how will demand respond? If we run a promotion, what lift might we get? What is the likely revenue or margin impact? All useful questions. But when you are actu

Why a scenario should be able to change as the decision starts changing the market around it. The limitation of a static scenario Most of us have used some form of scenario analysis. Change the price. Estimate what happens to demand. Compare the outcomes. Simple enough. But there is an assumption hidden inside that approach: that the same response relationship continues to apply throughout the scenario. In the real world, that may not be true. A price increase, for example, d

Why the market’s response to price depends on what else is happening at the time. The problem with a single elasticity number We have all seen elasticity expressed as a number. Increase price by a certain amount and demand is expected to move by another amount. It is useful. But does the same number really apply every time? Think about it. The same product can behave very differently when demand is strong versus weak. Customers may respond differently when you are priced belo

“Computers are useless. They can only give you answers.” Pablo Picasso spoke these words in 1964, a time when the computer was barely more than a large machine, but his words still ring true today. Technology is only as powerful as the humans adopting and applying it. We leverage technology to optimize every part of our businesses and operations today. Digital technologies create the possibility for efficiency gains and strong customer engagement. Organizations use many too