90 Minutes to Better Pricing Analysis Using Python
Every product must have a price point in order to sell in the market. This price point, however, cannot be just written down. It must be derived from data reflecting customers' preferences and willingness to pay. But how do you determine the price for a product? At the heart of the answer is what economists call the price elasticity.
Expert Walter R. Paczkowski shows you how to use quantitative methodologies to estimate the price elasticity of a product or service using Python, and use this information to develop a price point. Join in to explore the basics of designing and analyzing survey-based pricing studies such as conjoint analysis and analyzing transaction-based sales data to develop price elasticities and price points.
What you'll learn-and how you can apply it
By the end of this live online course, you’ll understand: - The importance of a price elasticity for optimal pricing - How to design and analyze a survey-based pricing study to develop a price elasticity and price point - How to analyze transaction-based sales data to develop a price elasticity and price point - How to use Python to do quantitative pricing analysis
And you’ll be able to: - Describe and interpret price elasticities - Design a basic conjoint pricing study using Python - Analyze conjoint results for pricing using Python - Estimate price elasticities using transactional data and Python
This training course is for you because...
- You’re a market research or pricing professional.
- You have to develop price elasticities.
- You want to expand your knowledge of quantitative pricing analysis methods.
- You want to learn how to use Python for quantitative pricing analysis.
- A working knowledge of Python and the Jupyter Notebook
- A basic understanding of pricing and price elasticities (useful but not required)
Recommended follow-up: - Take Business Data Analytics Using Python (live online training course with Walter R. Paczkowski)
About your instructor
Walter R. Paczkowski is a market research consultant at Data Analytics Corp., helping companies in a wide range of industries, such as telecommunications, pharmaceuticals, jewelry, food and beverages, and automotive, to mention a few, turn their market data into actionable information. Walter is also an adjunct faculty member of the Department of Economics at Rutgers University. He brings a wealth of knowledge to share about data analysis, drawing on his over 40 years of extensive quantitative experience as an analyst in AT&T's Analytical Support Center, a member of the technical staff at AT&T Bell Labs, head of pricing research in AT&T's Computer Systems Division, and founder of Data Analytics Corp. He was also an adjunct faculty member of the Department of Mathematics and Statistics at the College of New Jersey. Walter is the author of two analytical books—Market Data Analysis Using JMP (SAS Press, 2016) and Pricing Analytics (Routledge, 2018)—with a third forthcoming on quantitative methods for new product development (Routledge, 2020). He holds a PhD in economics from Texas A&M University.
The timeframes are only estimates and may vary according to how the class is progressing
Introduction to pricing (5 minutes) - Presentation: The importance of pricing; the importance of analytical methods for developing price points
Understanding price elasticities—the key to effective pricing (10 minutes) - Presentation and exercises: Overview of the elasticity concept; elasticity examples
Using survey data for elasticities: Conjoint studies (20 minutes) - Presentation and Notebook exercises: What is conjoint?; overview of a basic conjoint study—conjoint design, conjoint estimation; elasticities from a conjoint study
Using transaction data for elasticities: Regression modeling (20 minutes) - Presentation and Notebook exercises: Basic elasticity model based on historical sales data; estimation and interpretation
Wrap-up and Q&A (5 minutes)