Question
Projected sales can be used to assess the effectiveness of a pricing strategy by comparing them with actual sales. If the actual sales are close to the projected sales, it indicates that the pricing strategy is effective. On the other hand, if there is a significant difference between the projected and actual sales, it suggests that the pricing strategy may need to be adjusted. This comparison can help in understanding the price sensitivity of the customers and in making necessary adjustments to the pricing strategy.
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Execs can also use a price sensitivity graph to visualize how a strategy like price skimming affects the number of units sold over time. Units sold are tracked on the y axis, and price is tracked on the x-axis. This could be used with projected sales, real-time sales data, or both to assess how projections match reality. (Slide 15)
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