Abstract: A system and method for merchandising decomposition analysis (MDA), useful with stores, is provided. Econometric models are generated for product sales and are used to set pricing. Price setting may include optimizing prices. Point of sales data is collected from the stores, and benefits forecasts are generated and displayed. Benefit forecasts includes generating compliance, generating optimization benefit and generating level benefits. Generating optimization benefit includes at least one of differential benefit analysis, authorized benefit analysis and testable benefit analysis. The differential benefit analysis includes old/new cost method, cost neutral method and ignore cost method. Benefit forecasts generally include determining pre- and post-optimization price of the products, determining pre- and post-optimization costs, generating pre- and post-optimization forecasted units, calculating forecasted pre- and post-optimization profit, generate raw profit benefit, and calibrate raw profit benefit.

Abstract: A system and method for price and promotion response analysis is provided. Such a system is useful for a business to analyze the forecasted lifts associated with changes in price and promotion activity. The system sets the configuration of the response report, which includes price change and promotion change intervals. Promotions include temporary price reductions, displays, ads and multiples. Modeling data is received for the products. Forecasts, both non-cannibalistic and cannibalistic, are generated for the sales of the products dependent upon the price change and promotion change intervals. Forecasts include at least one of product forecasts, demand group forecasts, line level forecasts and category level forecasts. Suspect forecasts below a minimum confidence may be flagged. Confidence matrices may be generated which reflect accuracy of the forecasts. The response report may be generated by collecting the forecasts and the confidence matrices according to the configuration of the response report.