Final answer:
In marketing, pricing analysis is the activity that identifies how much customers are willing to pay and what competitors are charging for similar products and services.
Step-by-step explanation:
Pricing analysis is the process of using data and analytics to determine the optimal price for a product or service. It involves gathering information about customer behavior, competitor pricing, and market trends to make informed decisions about pricing.
For example, a company may conduct market research surveys or use data analytics tools to understand consumer demand and price sensitivity. They may also gather information on competitor pricing through market research reports or by monitoring their competitors' websites and promotions.
Pricing analytics are the metrics and associated tools used to understand how pricing activities affect the overall business, analyze the profitability of specific price points, and optimize a business's pricing strategy for maximum revenue.
By conducting a thorough pricing analysis, companies can strategically set their prices to maximize their profits while remaining competitive in the market.