Retail — Retail Price Elasticity Calculation Pipeline

Overview

The primary purpose of the retail_kmds_price_elasticity DAG is to calculate price elasticity, which informs pricing decisions for maximizing revenue and profit margins in the retail sector. The process begins with the ingestion of sales and pricing data from various management systems, including ERP transaction logs, pricing databases, and historical sales records. Once ingested, the data undergoes normalization and historical archiving to ensure consistency and reliability. Following this, econ

The primary purpose of the retail_kmds_price_elasticity DAG is to calculate price elasticity, which informs pricing decisions for maximizing revenue and profit margins in the retail sector. The process begins with the ingestion of sales and pricing data from various management systems, including ERP transaction logs, pricing databases, and historical sales records. Once ingested, the data undergoes normalization and historical archiving to ensure consistency and reliability. Following this, econometric models are applied to estimate price elasticity, which measures the responsiveness of demand to changes in price. The results of this analysis are then compiled into a comprehensive report, which includes recommendations for pricing adjustments based on the elasticity estimates. Key performance indicators (KPIs) such as revenue impact, margin improvement, and pricing accuracy are monitored to evaluate the effectiveness of the pricing strategies implemented. This DAG not only enhances the pricing optimization process but also provides significant business value by enabling retailers to make data-driven decisions that can lead to increased profitability and competitive advantage in the market.

Part of the Pricing Optimization solution for the Retail industry.

Use cases

• Enhances pricing strategies to maximize profit margins
• Provides insights for competitive pricing adjustments
• Improves revenue forecasting accuracy
• Supports strategic decision-making with data-driven insights
• Increases responsiveness to market changes and consumer behavior