The first part of the workshop will involve finding gold in the data. With the increasing availability of data, pricers can access that data to create knowledge about their customers’ and markets’ responses to pricing initiatives. In this part of the workshop, Alain will highlight some approaches to analyzing data and provide examples of how this has led to the development of pricing strategies.
Among the techniques covered will be:
- Regression analysis
- Factor analysis
- Correspondence analysis
- Clustering
But, internal data may not exist or suffice, so it has to be obtained to establish the value of a product or service. Two approaches will be discussed. The first, conjoint or discrete choice analysis, powerful to identify the trade-offs between price and other product attributes, will be reviewed. The second, value chain analysis, especially powerful in identifying the value that suppliers may provide to their business clients will then be highlighted.
Putting these factors together in the real-world of the competitive marketplace will be covered in the third part of the workshop.
Specifically:
- Decision tree analysis principles will be covered
- An example of the use of decision trees in developing a pricing strategy will be given
- Game theory basics will be presented
- Participants will be asked to play a pricing game
PS- Michael Hurwich will also attend the entire session and both Alain Meloche and Michael will do everything in our power to make ourselves available to discuss pricing issues with you.
