How can companies strategically and tactically set the most optimized pricing structure for consumer products for both online stores and offline retail channels?


by : 
Michelle L.


Pricing hugely influences a company’s profit. In fact, a 1% price decrease can results in 10-15% decrease in operating profit. The 4Ps (pricing, product, place, promotion) ultimately dictates a product life expectancy, brand image, competitive strength and market share. This research project is to establish a financial model, conduct market competitive research, research on price elasticity to find out volume sensitivity to prices and evaluate pricing coordination between online B2C (business to consumer through Amazon) price and offline B2B (business to business through Walmart Stores). The best pricing strategy based on profit maximization for the entire product life cycle will be defined using the data found and model established.