Patent attributes
A system and method for price and promotion response analysis is provided. Such a system is useful for a business to analyze the forecasted lifts associated with changes in price and promotion activity. The system sets the configuration of the response report, which includes price change and promotion change intervals. Promotions include temporary price reductions, displays, ads and multiples. Modeling data is received for the products. Forecasts, both non-cannibalistic and cannibalistic, are generated for the sales of the products dependent upon the price change and promotion change intervals. Forecasts include at least one of product forecasts, demand group forecasts, line level forecasts and category level forecasts. Suspect forecasts below a minimum confidence may be flagged. Confidence matrices may be generated which reflect accuracy of the forecasts. The response report may be generated by collecting the forecasts and the confidence matrices according to the configuration of the response report.
