AMA University

Price Optimization for

On The Trails PH

Salcedo, Ian Nichole O.

Tan, Airen M.
Vitug, Isaiah Kim
Introduction
• The increased use of the internet for commercial transactions lead to a large
accumulation of data about customers and products on the internet. In
particular, the sellers can easily build large databases that consist of
personalized data on all of their customers, and the customer’s past
purchases. Price optimization is the process of finding the optimal price
point of a product or service.

• This study is about creating a model with the help of Neural Networks to
determine the most optimal price point that will help the business grow and
maximize sales and profit. It will also help the staff lessen their workload and
benefit customers with the best price points to buy the product that they desire
to buy.
 Statement of the Problem

➢ The lack of understanding on ➢ The ability of small businesses

how price optimization works and to gain on competitive pricing to
how it helps in maximizing measure up against the
profitability competition for similar product/s.

➢ The economic slowdown giving

business worries on how to retain
their customer base.
 General
Objective
The aim of the proposed study is to design and
develop a working algorithm that will allow the
automatic optimization of prices of the different
products of the business and to maximize profits.
 Speci
f i c
➢ To help businesses achieve a target return on
investments

O bj e c
tive
➢ To help increase the mean profitability during sale
season considering all variable cost of the production
process.

➢ To give support and tools to businesses to take

informed decisions.

➢ To be able to build knowledge and make impact for

future sales actions.

➢ To develop an algorithm for price optimization.

Scope and Limitations
Scope
• The focus of the study is to create a software that will help the
optimization of prices to be able to maximize a business's
profitability
• To develop an optimal pricing system to increase e-commerce
profits by adapting to supply and demand levels.

• The system will help in managing and optimizing prices to lessen

the hassle and remove the tedious task for the employees

Limitations
• The system may face many restrictions like lack of availability of
enough data

• The system will only cater to properties of On the Trails PH


The collected studies and articles
highlight how crucial it is to have a
digital presence in our day-to-day lives
and tie it into our enterprises.
It also highlights how consumers
that small businesses achieve the twin objectives of
prefer the pricing of their products,
product brands and perceived
quality.
Synthesis
With the right price optimization tool, a
Having a good price optimization tool could
business can predict and change its price by
mean the difference between earning more
analyzing various factors and outliers using
and earning less money
Neural Networks.
A well-designed price optimization tool ensures
Being able to optimize your prices will
also help businesses be able to steer
having marginal price points and making it easy
clear of incurring marginal losses
for customers to purchase or choose products
based on the optimized price point.
 Research Method

This study used the Descriptive

Research method
In descriptive research, a summary of its
characteristics and correlation statistics,
as well as its focus on defining types of
research questions, methods, and results,
make it different from other types of In general, the method is good for this
research. study because it wants to show how
we can easily navigate through the
uncontrolled variables and deploy a
more quantitative approach on the
study
Conceptual Design
 Instrumentation

The ideas for the study come from a The proponents also did have
wide range of sources, including informal interviews with IT experts
published and unpublished literature and other people who work in this
and the internet. field.

The proponents listed down some The data gathered was used to
questions to be answered by the
business owner make the software
Software Development Life Cycle
System Flowchart