Why products with many variants creates Competitive Price Intelligence errors?

By GrowByData Content Team

| READ 4 MIN
TOPICS Blog, Competitive Price Intelligence
Competitive Price Intelligence and Product Matching-Growbydata

How do we consider a product a ‘match’ against a competitor’s product? It is one of the hardest challenges to provide accurate price comparison. The detail needed at a product variant level depends on competitor clients in different marketplaces, types of product offerings, and direct and indirect competitors. Product matching without considering a variant level match in some marketplaces may be adequate. However, in most cases, the detail product data needed to ‘match’ is much more complex.

Sellers must explore variants affecting market pricing, and must demand variant level match from their repricer vendor.

Variants are the options (or choices) available while purchasing a product. They comprise generic attributes such as size, color, material, quantity/case pack or specific attributes such as Amp, Wattage, Voltage, Resistance for electrical tools, features or add-ons for software packages, ingredients for food products, etc. Sellers must explore variants affecting market pricing, and tweak competitive reports to achieve better pricing insights into competitor and market behavior.

Variants typically have a dynamic relationship with product prices, i.e. product prices can differ per variant – color, size, functionality, features, components, material, pattern, etc.

Here’s an example of a product price that varies with color –

Variant Product-Black Shoe

Price of the product varies due to color

When a Competitive Price Intelligence is run for a product with two variants, it is essential to accumulate the enriched set of product attributes. Variant level matching is a major challenge for exact product matching. Depending on the product type and requirement, variants may have to be matched against a single or multiple attributes such as size, color, quantity, material, etc.

In the below example, the requirement is to match two black leather shoe. The competitor sells black leather and a suede shoe. Here, we do not need to consider the size or other attributes.

Client Product

Black Leather Shoe

Competitor Variant Product

Leather Boots

Leather Boots

To ensure the right variant is matched for each SKU, GrowByData’s proprietary Competitive Pricing Intelligence software marks such cases for review. With a mix of Artificial Intelligence, Human Intelligence, and quality check process, we correctly match at a product variant level. Only with this, we generate accurate SKU level competitive pricing data.

This is the level of high quality competitive pricing data you need to run your Competitive Price Intelligence software correctly and do Dynamic Pricing. Without this level of precision, your repricer will not work.

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