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This implementation is DEPRECATED, please refer now to the Negotiation Guidance Acclerator: Business User Reference (Optimization - Negotiation Guidance). |
To describe the pricing of a segment, you cannot use the actual prices directly because different products have different prices. You need to use a “target metric” that is comparable among all the products. To create the segments, you must define all the attributes (parameters) and observe the target metric distributed for each segment. The goal of this price optimization / Segmentation model is to reshape this distribution and increase the profit specific for each segment by targeting a higher aggregate margin %.
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