OnDemand WTP Pricing Research

How Do You Predict Demand and Set Prices For Products Never Sold Before? | Harvard Business School

How can a retailer use its own data to determine what to charge for its products on a day-to-day basis? Kris Ferreira explains the value of data-driven-pricing

How can a retailer use its own data to determine what to charge for products it has never sold before?

That’s a question Kris Ferreira considered during a presentation at Future Assembly, an event at Harvard Business School where business leaders and academics discussed the challenges of operating in a digitally-transformed economy.

“ALL OF THESE DECISIONS WOULD BE EASY TO MAKE IF I KNEW WHAT CONSUMER DEMAND WILL BE. THE PROBLEM IS THAT I HAVE A LOT OF UNCERTAINTY IN DEMAND”

All retailers face tricky tactical decisions related to assortment, inventory, product placement, and pricing. “All of these decisions would be easy to make if I knew what consumer demand will be,” Ferreira said. “The problem is that I have a lot of uncertainty in demand.”

Ferreira believes that the trick to tactical decision-making lies in quantitative analysis.

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How Do You Predict Demand and Set Prices For Products Never Sold Before? – HBS Working Knowledge – Harvard Business School.

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