NUSTON Menu EngineeringNUS High Team 2Quantitative
AnalysisProfit Optimisation using ExcelModelling Price
SensitivityModelling Interaction with other Menu itemsQualitative
AnalysisPsychological PricingPremium PricingProfit Maximisation
using ExcelUsed solver function in excelFind prices that maximise
profitCaveat: No constraints yet, so solution divergesModelling
Price SenstivityPrice elasticity of demandModelled price-quantity
relationship as linearTwo data points used to construct line for
each good: (Price of Good in 2014, Quantity of good demanded in
2014) & (0, Quantity of all goods in category demanded in
2014)Does not take into account customer preference
Demand Interaction with Other ItemsAssume that total number of
customers remain the sameNow, we model the proportion of customers
buying a certain item in a segmentTwo data points are: (Price of
Good in 2014, Quantity of item/ Quantity of all items in category )
& (0, 1)After this, we applied excel solver and obtain optimal
price valuesResults~165,000 dollar profitQualitative
AnalysisPyschological PricingPremium PricingOdd PricingResearch
show that
