Cutting Edge Research: To Build Predictive Price‐Volume Model Quantitative Research & Analytics (with an example of Indian Tyre Industry)

Abstract

Pricing is generally perceived to be a double edge weapon in the hands of marketers. While competitive pricing strategy may fuel demand in the short term, it may ultimately erode brand equity, precipitate price war leading to commoditization of category. However, pricing decisions taken after due objective consideration of brand equity and relative market positions viz., leader, challenger or follower brand position may actually help brands build dominant positions in the market. Identifying the right price linked to its value proposition can surely help brands build sustainable differentiation in the long run.