Abstract
AbstractThe usage and the estimation of price response function is very important for strategic marketing decisions. Typically price response functions with an empirical basis are used. However, such price response functions are subject to a lot of disturbing influence factors, e.g., the assumed profit maximum price and the assumed corresponding quantity of sales. In such cases, the question how stable the found price response function is was not answered sufficiently up to now. In this paper, the question will be pursued how much (and what kind of) errors in market research are pardonable for a stable price response function. For the comparisons, a factorial design with synthetically generated and disturbed data is used.KeywordsMonadic approachMonte Carlo comparisonPrice response functions
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