What the Traffic Will Bear

Barret, Victoria Murphy
July 2006
Forbes Asia;7/3/2006, Vol. 2 Issue 12, p44
The article presents information on a DemandTec software that help retailers in pricing their commodities. In 2003, Duane Reade struggled to boost the sales of its diaper, so it adopted the software hoping to learn how to price diapers. The software gleaned from the data an insight that retailers missed. Parents of newborns are far less price-sensitive than parents of toddlers. DemandTec's math models are influencing pricing strategy at Best Buy, Longs Drugs, Safeway and RadioShack.


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