Prognostication model and pricing strategy optimization for restaurant businesses

Abstract

The aim of this thesis is to study price elasticity for this type of consumer product such as confectionery, in order to find out the relationship between price and demand. Since very few companies change the price in both directions for research, we will need to simulate how the demand would change if the price will be moved by an arbitrary percentage rate. The result of this work will be a revealing of the correct elasticity between demand and price for every product, which will allow to improve current pricing strategy and optimize the model of sales with relation to retail prices.