Price Sensitivity and Pricing Decisions
What you will learn
Pricing strategy is the central component in your overall profit performance. This online course prepares you to anticipate the impact certain pricing decisions will have on consumer demand and thrive in a highly competitive environment. Employ a strategic proactive approach in pricing decisions Evaluate the effectiveness of price elasticity in pricing decisions Estimate price sensitivity when formulating pricing strategies Use mathematical modeling to analyze variable pricing strategies You'll learn to measure demand sensitivity to your price changes, measure the overall impact and even analyze and improve upon your competitors' strategies. See how pricing strategies in economic declines can bring volatility and bring about a "price war" situation, like that of the airline industry. This course also provides the tools to conduct a break-even analysis, which is used to determine a baseline volume and price that will generate positive revenue. Closely aligned with the break-even analysis is the concept of price elasticity, which is the measurement of change in demand as it relates to a change in price. By measuring demand sensitivity, running a break-even analyses and forecasting price elasticity you'll be able to develop a measured, data-driven approach to pricing strategy geared toward positive revenue generation and sustained profitability for your operation. The course Price and Inventory Controls is required to be completed prior to starting this course.