Element / Retail - Round Price Sensitivity in France Pricing Simulator
Round Price Sensitivity in France Pricing Simulator
Problem :
The marketing team wanted visibility into how rounded price thresholds (e.g., €1.99 vs. €2.00) influenced sales volume. Without such insights, strategic pricing for promotions was less effective.
Solution :
Using three years of historical sales data, scripts were developed to group price points into round-price buckets. A Bayesian regression model was applied to simulate the impact of different thresholds on sales volumes. The model excluded promotion weeks to maintain data purity.
Outcome :
The simulator empowered the marketing team to evaluate the effect of round pricing on consumer behavior. These insights informed strategic promotional pricing decisions, driving better margin outcomes for both Mars and retail partners.