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simulation input/output analysis
I agree with Mr. Vinod answer
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.
Agree with the answer given by Vinod Jetley
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.
I believe there is a system and well explained by experts. Thank You.
Thanks for the invitation
Good question
Agreed with both answers given
by Mr.:Jetley & Mr.:Vrindavan as well too
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:
Well answer add by all <<<<<<<<<<<<<
