Pricing Optimization Theory

Pricing Optimization Theory involves determining the best price for a product or service to maximize profit or other goals, considering factors like customer demand, costs, and market conditions. It uses data analysis and mathematical models to find the balance between setting a price high enough to generate profit but low enough to attract customers. The goal is to identify the price point that optimizes revenue or market share while adapting to competitive dynamics and consumer behavior. Essentially, it's a strategic approach to pricing that leverages insights to make informed and effective decisions.