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How can I determine product demand after a change in price, features and/or distribution channels?

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/11/12
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

simulation input/output analysis

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

I agree with Mr. Vinod answer

Abdou warshan
by Abdou warshan , • مدير إدارة المخازن والنقل , شركة تمكين الدولية للأجهزة المنزلية

An important aspect of a product's demand curve is how much the quantity demanded changes when the price changes. The economic measure of this response is the price elasticity of demand.

Price elasticity of demand is calculated by dividing the proportionate change in quantity demanded by the proportionate change in price. Proportionate (or percentage) changes are used so that the elasticity is a unit-less value and does not depend on the types of measures used (e.g. kilograms, pounds, etc).

As an example, if a2% increase in price resulted in a1% decrease in quantity demanded, the price elasticity of demand would be equal to approximately0.5.

Mohd Asif Ansari
by Mohd Asif Ansari , HR Administrator , Al Nasseej Al Arabi Factory Co. Ltd.

Agree with the answer given by Vinod Jetley 

padmakumar pathiyil
by padmakumar pathiyil , Marketing Consultant , Management Consultancy

Choice modeling is the most accurate and projectable methodology available to collect information on what is important to customers. It derives rather than asks customers to tell directly what is important to them. To arrive at this information, we would implement a conjoint study where respondents are asked to choose between several products. 

Georges Aref Chaoul
by Georges Aref Chaoul , Business Unit Director - Consumer Services , Kaizen Asset Management Services

I believe there is a system and well explained by experts. Thank You.

hossam azzam
by hossam azzam , Fast food restaurant,s manager. , alexandria-egypt

Thanks for the invitation

Good question

Agreed with both answers given

by Mr.:Jetley & Mr.:Vrindavan as well too

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

Simulation software is designed to analyze and answer these types of "what if?" scenarios. By changing the product's price or features, the simulation software will automatically show the resulting price share of your company's product and all competing products. The simulation software is custom written based on the results of a choice modeling survey.

With the simulation software, we can see the incremental change in share gained from a change in product, as well as which competitors' products lose the market share your company gains. This is quite valuable in assessing possible competitor responses.

Strengths:

  • Easy-to-use: Simulation software is user-friendly.
  • Runs everywhere: Designed to run on any PC capable of running Microsoft Excel.
  • Versatile: Can handle any number of products. Typically, we design it to accommodate6-10 client products with15-20 additional competitor products.

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , Warehouse Supervisor , AL MUTLAQ FURNITURE MFG

Well answer add by all <<<<<<<<<<<<<

Deleted user
by Deleted user

My answer is Research'ssimulation softwareis designed to analyse and answer these types of "what if?" scenarios.

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