You are the head of pricing strategy for your firm.You are very excited about a new point-of-sale system that has just been installed in all your firm's retail outlets.The system is a state-of-the-art real-time information system that captures the details of every sale made in your retail outlets.You have up-to-the-minute data-on-demand elements for your entire product line.
Required:
In using your new data-on-demand elements to make pricing decisions,how would you handle the limitations of this approach?
A)Post charts of predicted future buying trends in the sales department as motivational incentives.
B)Tell decision-making executives that you cannot produce an accurate estimation of current trends.
C)Be prepared for unpredictable changes in demand because actual purchase data do not allow estimation of future trends.
D)Change the way that the firm's accounts receivable employees record information.
E)Change the way that the firm's accounts payable employees record information.

Question

​You are the head of pricing strategy for your firm.You are very excited about a new point-of-sale system that has just been installed in all your firm's retail outlets.The system is a state-of-the-art real-time information system that captures the details of every sale made in your retail outlets.You have up-to-the-minute data-on-demand elements for your entire product line. ​
Required:
In using your new data-on-demand elements to make pricing decisions,how would you handle the limitations of this approach?
A)​Post charts of predicted future buying trends in the sales department as motivational incentives.
B)​Tell decision-making executives that you cannot produce an accurate estimation of current trends.
C)​Be prepared for unpredictable changes in demand because actual purchase data do not allow estimation of future trends.
D)​Change the way that the firm's accounts receivable employees record information.
E)​Change the way that the firm's accounts payable employees record information.

Quizplus · Accepted Answer

While real-time data is valuable in making pricing decisions, it is important to recognize the limitations of this approach. Actual purchase data only reflects past demand and does not necessarily allow estimation of future trends. Therefore, it is important to be prepared for unpredictable changes in demand and to not rely solely on the data-on-demand elements for pricing decisions. Option A, B, D and E are not relevant to addressing the limitations of relying on real-time data for pricing decisions.

​You Are the Head of Pricing Strategy for Your Firm

You Are the Head of Pricing Strategy for Your Firm