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.