Pricing Analytics
Master quantitative pricing methods: demand curves, price elasticity, Van Westendorp PSM, Gabor-Granger, conjoint-based WTP, price optimization models, pricing experiments, and behavioral pricing effects.
Chapter Section Outline (12 Sections)
Topics and managerial frameworks covered in Pricing Analytics:
- 1. Why Pricing Is the Most Under-Analyzed P
- 2. Where Elasticity Comes From
- 3. Demand Curves and Price Elasticity
- 4. The Van Westendorp Price Sensitivity Meter
- 5. Gabor–Granger: Direct Price-Trial Estimation
- 6. Conjoint-Based Willingness to Pay
- 7. Price Optimization Models
- 8. Designing Pricing Experiments
- 9. Behavioral Pricing: Psychology Meets Analytics
- 10. GenAI in Pricing Analytics
- 11. Case Application — CedarCraft Furniture
- 12. Practice & Assessment
Interactive Concept Mini-Widgets Embedded in This Chapter (4)
Students manipulate these interactive visual simulations directly inside the chapter reading before answering gated check-in questions:
Price Elasticity Simulator
Lets users set a base price, base quantity, and elasticity value, then see how demand, revenue, and profit change with a price adjustment. Draws a simple demand-revenue chart using canvas.
Van Westendorp PSM Visualizer
A Price Sensitivity Meter (PSM, also van Westendorp) shows the distribution of prices across four willingness-to-pay (WTP) anchors: Too cheap (perception of low quality) Bargain (good value) Expensive (getting expensive, still considered) Too expensive (too...
Gabor-Granger Simulator
The Gabor-Granger method is a direct pricing research technique where respondents are shown a product and asked "Would you buy at this price?" The price adjusts based on responses: up if they say yes, down if they say no.
Pricing Strategy Matcher
A quiz-style widget that guides students through scenario-based pricing decisions. Given a product category, market conditions, and competitive landscape, students match the scenario to an appropriate pricing strategy.
Paired Browser-Based Analytics Calculators (6)
This chapter connects directly to these full MktPraxis analytical apps (with pre-loaded business case scenarios, CSV upload, and reproducible Python export):
💲 Price Optimization & Pricing Strategy Sandbox
Estimate demand curves, find revenue- and profit-maximizing prices, and compare pricing strategies side-by-side. Upload your own data or explore built-in scenarios.
Pre-loaded Business Scenarios: Bean & Brew: Premium Coffee Subscription Box · TaskFlow Pro: B2B Project Management SaaS · SkyWest Regional: LAX–SFO Route Optimization · Urban Threads: Seasonal Discount Strategy · IronCore Fitness: Monthly Membership Pricing · StreamWave: Premium Streaming Service Launch · Alder & Vine Spa: Pricing Experiments via Daily Deals · HarvestTable: Premium Condiment Shelf-Price Test · Marlowe Riptide: What's the Right Single-Game Ticket Price? · AdArchy: A Card Game Born of Spite
🎁 Conjoint Analysis & Market Simulation
Discover what customers truly value. Design choice-based experiments and simulate market share.
Pre-loaded Business Scenarios: Smartphone Purchase Decisions: Features, Brand, and Price · Streaming Service Launch: Content, Features, and Pricing · Course Design Preferences: Format, Workload, and Assessment · Designing the Marlowe Riptide Season Membership
🔧 Conjoint Study Designer
Design your own conjoint study with custom attributes and levels.
Pre-loaded Business Scenarios: Smartphone Purchase Decisions: Features, Brand, and Price · Streaming Service Launch: Content, Features, and Pricing · Course Design Preferences: Format, Workload, and Assessment · Designing the Marlowe Riptide Season Membership
📉 Bivariate Regression (Simple)
Predict an outcome using one variable (e.g., Spend → Sales).
Pre-loaded Business Scenarios: Paid Social Spend vs. Weekly Revenue · Email Creative Themes vs. Average Order Value · Likert Reaction vs. Brand Favorability · D&D Character Level vs. Gold Earned
🔗 MLR with Interactions
Model non-linear effects and interaction terms.
Pre-loaded Business Scenarios: Ad Spend × Seasonality Interaction · Email Frequency Quadratic Effect · Price × Quality Interaction · D&D: Level × Class Interaction
🅰️ A/B Proportion Test
Compare conversion rates between two variants.
Pre-loaded Business Scenarios: StudyFlow Newsletter CTA Test · Retargeting Banner Offer Test · Loyalty Partner Offer Test · Social Post CTA Test (Raw Data)