- Acquisition & Retention
Determining how much of a marketing budget should be spent on customer acuqisition and how much on customer retention can be a difficult choice. This simulation explores how changes in spending can affect firm profits.
- Reference Pricing
Price is one of the managers most powerful levers in affecting firm profitability. Thinking strategically about pricing often involves looking at consumer behavior over several purchasing decision periods. Consumers form a reference price for a product, a baseline price that affects their decision to purchase the product again. Including this effect into the price setting process can lead to gains in profit.
- Break-even Analysis
Price is one of the managers most powerful levers in affecting firm profitability, yet managers are often reluctant to use this tool. Breakeven analysis is an important starting point for strategic pricing by thinking about how sales volumes need to change in response to changes in price to improve profitability.
Correlation is one of the most commonly used statistical techniques for finding patterns in data. However, outlying data points can create deceptive results. Generate random data points or click on the chart to enter your own data points to see how the correlation coefficient responds. Learn to see how this statistic can be used and also misused.