Multivariate Analysis Article Essay
Multivariate Analysis Article
Pricing Strategies Using E-Commerce Data
As the modern society becomes more advanced and industrialized in terms of technology and e-commerce, marketing in this field of economy is indeed growing fast with many new businesses offering their own products and services to the consumer market. With the rapid influx in the information technology, the form of e-commerce is becoming a significant trend manifesting as a successful business form. Thus, in this growing concern, different statistical studies and multivariate analysis are now being conducted to determine the significance of the different marketing concepts such as pricing strategies to the success of e-commerce.
In this same aspect that Ghose and Sundararajan, scholars from the Leonard Stern School of Business, conducted their multivariate analysis study to determine the significance of the pricing strategy in the marketing aspect of e-commerce. In this study, the researchers have established two significant variables namely the informations about the price and sales ranking of e-businesses readily available in their web domain and internet surveys as the dependent variables and the estimation values regarding the demands and sales of the products of the e-businesses as the dependent variables. All relevant informations that are gathered such as the company’s list price, used price, new price and sales ranking are incorporated in the study. As the concept of multivariate analysis require, statistical calculations were also used to process the gathered informations to establish an estimated yet intelligent relationship factor between the two variables.
In summary, the study was implemented to determining the effectiveness and significance of the application of the pricing strategies of the e-businesses to their products either in retail or servicing line. As gathered through intensive statistical analysis, this particular study has presented that marketing pricing strategies are indeed valuable in promoting the business product to the rapidly increasing consumer market. As the e-commerce market continuously grows, consumer demands in this aspect are also growing and e-businesses must develop effective marketing strategies to better take advantage of this market growth.
Ghose, Anindya & Sundararajan, Arun (2005). Evaluating Pricing Strategy using eCommerce Data: Evidence and Estimation Challenges. Leonard Stern School of Business, New York University. http://archive.nyu.edu/bitstream/2451/14114/1/CeDER-05-24.pdf. May 31, 2007.