You're reading from The Art of Data-Driven Business Transform your organization into a data-driven one with the power of Python machine learning

Product type Paperback

Published in Dec 2022

Publisher Packt

ISBN-13 9781804611036

Length 314 pages

Edition 1st Edition

Languages

Python

Tools

Seaborn

Concepts

Data Science

Author (1):

Alan Bernardo Palacio

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Table of Contents (17) Chapters

Preface

1. Part 1: Data Analytics and Forecasting with Python

2. Chapter 1: Analyzing and Visualizing Data with Python FREE CHAPTER

3. Chapter 2: Using Machine Learning in Business Operations

4. Part 2: Market and Customer Insights

5. Chapter 3: Finding Business Opportunities with Market Insights

6. Chapter 4: Understanding Customer Preferences with Conjoint Analysis

7. Chapter 5: Selecting the Optimal Price with Price Demand Elasticity

8. Chapter 6: Product Recommendation

9. Part 3: Operation and Pricing Optimization

10. Chapter 7: Predicting Customer Churn

11. Chapter 8: Grouping Users with Customer Segmentation

12. Chapter 9: Using Historical Markdown Data to Predict Sales

13. Chapter 10: Web Analytics Optimization

14. Chapter 11: Creating a Data-Driven Culture in Business

15. Index

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Selecting the Optimal Price with Price Demand Elasticity

Price elasticity of demand measures how much a product’s consumption changes in response to price changes. A good is elastic if a price adjustment results in a significant shift in either supply or demand. If a price adjustment for the goods does not significantly affect demand or supply, it is inelastic. The elasticity of a product is impacted by the accessibility of an alternative. Demand won’t change as the price increases if the product is necessary and there are no suitable alternatives, making it inelastic.

In this chapter, we will learn about the following:

What is price elasticity and how it can be used to maximize revenue?
Exploring the data to determine pricing patterns and consumer behavior around them
Determining the demand curve for different products
Optimizing the price to maximize revenue for all items

In this case, we will use food truck sales data to analyze the impact...