What is meant by Price sensitivity table?
A "price sensitivity table" is an analytical tool that depicts the impact of price changes on the demand for a product or service. These tables help companies understand how sensitive their customers are to price changes and how these changes can affect revenue and profit figures.
Typical functions of software in the area of "price sensitivity tables" include:
- Data Analysis and Visualization: The software analyzes historical sales data and visualizes the relationship between price and demand.
- Simulation of Pricing Scenarios: Users can simulate various pricing scenarios and assess their potential impact on revenue and profit.
- Calculation of Price Elasticity: The software calculates the price elasticity of demand to determine how significantly demand changes with a price change.
- Segment Analysis: Analysis of price sensitivity across different customer segments to develop differentiated pricing strategies.
- Report Generation: Creation of detailed reports and dashboards to support decision-making.
- Integration with Other Systems: Integration with CRM, ERP, and other relevant systems to leverage a comprehensive data base for analysis.
- Automated Recommendations: Suggestions for optimal pricing strategies based on the analyzed data.