Deutsch
English
Research exchange at the Universidad de los Andes (UANDES)
Professor Winfried Steiner presents new approaches to dynamic price optimization
As part of an international research exchange, Professor Dr. Winfried Steiner from the Institute of Economics at Clausthal University of Technology recently visited the Universidad de los Andes (UANDES) in Santiago de Chile. He presented his current research work entitled
"Price Response Modeling for (Retail) Sales Data Based on Advanced Regression Techniques" to members of the Faculty of Economics and Business Administration.
In his presentation, Professor Steiner emphasized the relevance of precise sales forecasts for well-founded business decisions - especially in the context of pricing. Companies increasingly need reliable models in order to forecast future sales figures and optimize their pricing strategies accordingly.
This study presents an innovative approach to dynamic price optimization based on flexible and modern regression methods. The research approach is characterized by two key features:
- High flexibility: sales reactions are not forced into rigid, predetermined functional trajectories. Instead, the models learn from real customer behavior - including reactions to past price changes.
- Advanced methodology: By using advanced methods such as P-splines and Bayesian modeling, price effects can be precisely estimated and adapted to specific locations (e.g. for individual stores of retail chains).
Based on this, individual optimal price curves (dynamic price paths) can be calculated for products and locations in order to increase or maximize profits. A real-life application test showed that the model not only provides more accurate sales forecasts, but also enables higher expected profits compared to traditional methods.
The research exchange underlines the international networking of Clausthal University of Technology and the scientific importance of the Institute of Economics. Clausthal University of Technology and UANDES plan to further intensify their cooperation in research and teaching.
