Demand Forecasting in Pricing Strategy

Demand forecasting in pricing strategy is the process of predicting future customer demand for a product or service. Businesses analyze historical sales data, market trends, and consumer behavior to estimate how much of a product they will sell at various price points. This information helps companies set prices that maximize revenue while remaining competitive. By understanding demand, they can adjust prices dynamically, ensuring they meet customer needs while optimizing profit margins. Accurate demand forecasting is crucial for inventory management, marketing strategies, and overall business success.