What is 'market adoption curve' in SAP IS-PSI - SAP Convergent Pricing Simulation?

market adoption curve - Overview

• Component: IS-PSI

• Component Name: SAP Convergent Pricing Simulation

• Description: A visualization of the anticipated sales behavior for a tariff over a defined period. The market adoption curve is created in the Market Adoption Planner during customer behavior modeling.

market adoption curve - Details

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  Key Concepts: 
  The market adoption curve is a concept used in the IS-PSI SAP Convergent Pricing Simulation component of SAP software. It is a graphical representation of the rate at which customers adopt a new product or service. The curve is divided into four stages: innovators, early adopters, early majority, and late majority. Each stage represents a different level of customer adoption. 
  
  How to use it: 
  The market adoption curve can be used to predict customer behavior and to determine the best pricing strategy for a product or service. It can also be used to identify potential opportunities for growth and to measure the success of a product or service. 
  
  Tips & Tricks: 
  When using the market adoption curve, it is important to consider the customer’s needs and preferences. This will help you determine the best pricing strategy for your product or service. Additionally, it is important to monitor customer feedback and adjust your pricing strategy accordingly. 
  
  Related Information: 
  The market adoption curve is closely related to the concept of customer lifetime value (CLV). CLV is a measure of how much value a customer brings to a business over their lifetime. It can be used to determine the best pricing strategy for a product or service and to identify potential opportunities for growth.