The Demand Curve node takes an Input Product Array and Willingness To Pay (WTP) Matrix and calculates the Demand Curve for the set of Products selected by the user.
For each Product in the Demand Curve Product Set, the Demand Curve node will also calculate the Profit Maximizing Price. In many situations, altering a Product's Price will result in a lot of 'Cannibalization' - that is, customers selecting a different Product to the detriment of the Store or Brand owner who is responsible for both. Hence in addition to the Demand Curve node calculating the Profit Maximizing Price with respect to the Product itself, the Demand Curve node will also calculate the Profit Maximizing Price with respect to the Product's same Brand, to the Product's same Store, and to the Product's same Location, as well as to Family, Category, and Platform.
By default, the Demand Curve for each Product will stretch from the Product's Cost (low-point), to the Product's current Price (mid-point), to the Product's Price plus Cost (high-point). The user may select to override this default behavior by setting a fixed percentage Gap Width. In this case the Demand Curve's low-point and high-point will be determined by the Gap Width and the number of Sample Points.
More Help: Examples and sample workflows can be found at the Scientific Strategy website: www.scientificstrategy.com.
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To use this node in KNIME, install the extension Market Simulation nodes by Scientific Strategy for KNIME - Community Edition from the below update site following our NodePit Product and Node Installation Guide:
A zipped version of the software site can be downloaded here.
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