From the course: The Data Science of Media and Entertainment with Barton Poulson

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

Pricing algorithms

Pricing algorithms

From the course: The Data Science of Media and Entertainment with Barton Poulson

Start my 1-month free trial

Pricing algorithms

“

- [Instructor] Are you charging too much for your offering and losing potential customers, or are you charging too little and losing possible profits? How can you find the sweet spot between these two? Well, pricing algorithms are methods for setting prices and may be one of the most important tools for finding the ideal balance between these two extremes. The way you go about this depends in part on what your goals are. You may be trying to maximize revenue, that is profitability, or return on investment, but you also may be trying to maximize reach, or you're growing your audience to get as many people as possible. Or, if you're a mission-based organization, you may be trying to maximize your impact and provide the best services possible. And what these choices influence is the kind of data you're going to use and the way you're going to reach out to each of your audiences. But let me say a little bit about algorithmic pricing in general. An algorithm is a formula or a method for…

Contents