AI News, Application of Machine Learning in Pricing and Revenue Management

Application of Machine Learning in Pricing and Revenue Management

Prescriptive Analytics and B2B Pricing Science Pricing science is the application of analytical techniques and methods to solve the problem of setting prices.

This discipline had its origins in the development of yield management in the airline industry in the 1980s, and has since spread to many other sectors and pricing contexts, including media, retail, manufacturing, distribution, etc.

The first step in creating a pricing strategy, developing a robust and reliable prediction model, is crucially important because failing to understand historical behavior and failing to capture market dynamics leads to irrelevant price recommendations.

 In B2B companies, pricing behavior depends on many factors, such as product type, industry, location, annual customer spends, order size, seasonality, and many more.

Machine learning (ML) algorithms are categorized into three main groups based on their interactions with the environment: supervised learning, unsupervised learning and reinforcement learning.

In this post we are going to review the application of first two categories for B2B pricing.   There two foremast application of supervised ML algorithms in pricing science: Market Price Prediction: Accurate market price prediction is extremely important in the price optimization process. In Figure 3, the actual market price is P0 and the optimum market price is P*.

Discovering hidden patterns and structures from data often leads to actionable insights that enable various trends to be predicted and helps businesses gain a competitive advantage.

Key Information to Check Before Trading a Market

Judging how to trade price moves is a major part of trading, but it is also important to ensure you familiarise yourself with the finer details before tackling a new ...

4. How To Identify Stock Market Direction (Trends) Part 1

Want to learn how to gauge the future price of your stock? Part 2: Visit: .

3 Simple Ways To Use Candlestick Patterns In Trading; SchoolOfTrade.com

Read this on our blog: In today's video we are going to take a step back and ..

Revenue, Profits, and Price: Crash Course Economics #24

How do companies make money? What are profits? Revenues? How are prices set? This week, Jacob and Adriene are talking business. Whether you're selling ...

How to Sell A Product - Sell Anything to Anyone with The 4 P's Method

Claim Your Free YouTube Passive Income Course: ▻ Free 11 Questions to Change Your Life WATCH .

How To Price Design Services & Creativity

Confused about how to price creative services? Are you charging hourly versus value based pricing? Is there a better way to determine what is fair to you and ...

Cryptocurrency Trading Tips & Tricks. Learn to find Market Reversal Price Points.

Want to Know Cryptocurrency Market Reversal Price Points? This technique & TD Sequential Indicator will give you excellent Trend Reversal Points with High ...

Stock Market For Beginners 📈 TRADING AND INVESTING 101

FOLLOW ME ON INSTAGRAM FOR DAILY MOTIVATIONAL CONTENT ✓ @ryanscribnerofficial ______ Ready to start investing? 🤔 WEBULL: "Get a FREE ...

Warren Buffett: Just Looking At The Price Is Not Investing | CNBC

Warren Buffett, Berkshire Hathaway chairman and CEO, talks about volatility in the market, the value of American business and what to look for when investing.

Learn to find premium trade entries in any market

Day traders can learn how to find the premium support and resistance price levels on any chart that allows them to enter trades at the ..