ing the products of competing firms by such characteristics as price and quality we found an unoccupied position in the market of producing honey that characterize our products as high quality merchandise at a reasonable price.
Chapter 4. Determination of optimal price for a product, based on a test marketing
Test marketing involves the limited sale of goods in the selected region. The purpose of test - to determine whether consumers buy a product in real conditions and experience different methods of sales.strategy of the firm can be based on three methodological approaches: the cost, demand or competition. In the course project is used method of pricing, that is oriented to demand, taking into account influence of of other methodological approaches because they are interrelated. The chosen method is based on the classical economic model that considers pricing as a mechanism responsible for the efficient allocation and use of resources. Central economic model is the law of demand, according to which between demand and price there is an inverse relation. That is - the price increase leads to a decrease in demand. The chosen methodology assumes that the demand can be established with reasonable certainty.
4.1 Determination of relationship between price and demand
For the estimation of relationship between price and demand for the new product (by the level of its sale) company for months conducted test marketing of the product for different valuesof the price.
Data-in: price and the sales volume
Table 4.1
Price, UAH.The volume of sales,units.150120142,8132135,6144128,4156121,2168114180106,819599,621092,422585,22407825570,8270
If represent each pair of observations in the system of coordinates where the quantity of demand (N) is deposited on the axis Y, and the price (Ц) -on the axis X, then we get the correlation field points.
Pic 4.1 Correlation field points
Putting the regression equation, which establishes interrelation between the studied parameters: price and volume of demand, in this case equal to that of actual sales, which will look like:
,
N - the theoretical value of sales volume at an appropriate price.calculate b0 and b1 need to solve the system of normal equations:
Substitute the known numbers in Table 4.1. to the system of equations to obtain the following result:
After multiplying on first formula, we get:
When substitution value b0 of the upper equation system we obtain the next equation.the resulting equation we find b1, then substitute this value in any of the original equations to find b0.1=- +1,9012237760=+401,1451049
Interim payments will be recorded in the table. 4.2.
Table 4.2calculations
m=12PnP*nP2n2NiNi-nmNi-nm21150120180002250014400115,96154-75,2884625668,3524411142,813218849,620391,8417424129,65035-61,599653794,5169231135,614419526,418387,3620736143,33916-47,9108392295,4485091128,415620030,416486,5624336157,02797-34,2220281171,1471991121,216820361,614689,4428224170,71678-20,533217421,61299151114180205201299632400184,40559-6,844405646,845887941106,81952082611406,2438025198,094416,8444055946,84588794199,6210209169920,1644100211,7832220,5332168421,6129915192,4225207908537,7650625225,4720334,2220281171,147199185,2240204487259,0457600239,1608447,91083922295,44850917825519890608465025252,8496561,59965033794,516923170,8270191165012,6472900266,5384675,28846155668,352441Sum1324,82295239274153671,04465795229526795,8479
Interim calculationson the data we make a regression equation that would look like this:=401,1451049+ (- 1,901223776) * Pplot the dependence (pict. 4.2) the volume of sales (N) of the price (P). Example graph of the function N=f (P).
4.2. Graph of dependence total sales and price.we determine the density of connection between these values ???? by calculating the coefficient of determination.
where- factor variance, - total variance; coefficient of determination - is the proportion variance of the dependent variable that is explained by the examined model dependence.
After receiving the necessary data for the calculation, we calculate the coefficient of determination:
=0,9938, which means the link between price and demand is relatively strong, which enables us to almost accurately determine physical dependence prices and demand.
.2 Determination of the optimal price at which the firm will get the maximum profit
A ...
