Gamma (E-commerce)

In e-commerce, Gamma refers to a measure of how responsive sales are to promotional activities such as discounts or advertising. It helps businesses understand how much sales volume will increase when they change marketing efforts or pricing. Essentially, a higher Gamma indicates that small changes in marketing or prices can lead to larger shifts in sales, allowing companies to optimize their strategies for maximum revenue and growth. It’s a useful concept for making informed decisions about marketing investments and pricing adjustments in online retail.