Abstract: A method for pricing products (e.g., goods or services) offered to a customer comprises the steps of modeling customer behavior using a Zero Inflated Regression Model approach, using records of buyer responses to past offers, to yield an expected demand for the goods or services as a function of price; calculating the seller performance goal as a function of price using the expected customer demand; and selecting the price proposal to maximize the seller performance goal. The Zero Inflated Model is used to calculate the likelihood that the customer may have a non-zero demand for the product or service as a function of price. The Non-Negative Regression Model is used to calculate the expected demand for the product or service given that the customer may have non-zero demand.

Abstract: The present invention provides a configurable pricing system that allows users to define or modify data used to analyze, evaluate, improve, and design pricing changes according to the user's need. A Graphical user interface or some other type of user interface allows the user to access and review various data to be used during pricing optimization. The user may then modify this data as needed to improve the pricing evaluation, such as defining sales or pricing trends, or relationships between the product of interest and other competing items. The user interface may further display changes in pricing and the effects of the pricing changes, as caused by the user's changes. The interface may also allow the user to modify the mathematical model to be used during price optimization, as well as define variables, constraints, and boundaries to be considered during the price optimization.