Simon Caufield and Bob Phillips had just put the finishing touches on the business plan for Nomis Solutions, a start-up company that planned to offer price-optimization solutions to financial service firms. Nomis aimed to use advanced analytic techniques to help its clients to set prices for consumer loans and deposits. Was there a market for the products and services that Nomis planned to offer? If so, how large was the market? What would persuade potential clients that Nomis's product and services would add value?
Simon Caufield and Bob Phillips had just put the finishing touches on the business plan for Nomis Solutions, a start-up company that planned to offer price-optimization solutions to financial service firms. Nomis aimed to use advanced analytic techniques to help its clients to set prices for consumer loans and deposits. Was there a market for the products and services that Nomis planned to offer? If so, how large was the market? What would persuade potential clients that Nomis's product and services would add value?
While Fjord Motor Company (a fictitious company) has been successful in fleet sales, winning almost 70 of its 4,000 bids each year, the company has become concerned about inconsistent and inaccurate bidding. Worried that its fleet sales staff hasn't maximized profits on its Coronet Elizabeth, the model favored by police departments and corporate fleets, Fjord hires a consultant to examine its pricing data. In this case students are asked to develop pricing strategies by creating a two-parameter logistic model and to consider how additional factors, such as the size of an order, affects pricing.