Price simulations
Metrisim now offers a price simulation module to make price simulations more convenient. Instead of manually running the simulation at each price point, the simulation is repeated at multiple price points across the price range and plotted on price-share and price-RPK line charts.
How to use - step by step
- Setup your scenario on the control tab and run.
- Go to the price tab and indicate the number of price points (interpolation is used to estimate results for prices at even increments across the tested price range).
- Select the product in the simulator - e.g. p1. Usually this is your product, which by convention would have been placed in the first column of your control.csv and so should appear in the first column on the control panel tab. Make sure it is amongst the products included in the scenario on the control tab (i.e. those marked 'Yes' in the top row).
- Click run. The simulator will now run a simulation at each price point and provide estimated share % and RPK (revenue per 1,000 customers). For better accuracy include external effects via the relevant set feature and / or calibration. Respondent weights are often also necessary to improve representation of the target population. These can be combined with volume weighting in a single weight. Volume weights are relevant in markets where variations exist in the number of units purchased per customer.
Example
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