Interpreting Results Flashcards
Value Score
A multi-factor algorithm (like a credit score) is essentially a rating based on price, customer sentiment, and price response.
An item that is highly valued is “PRICED RIGHT” meaning consumers believe most people are willing to pay close to, at or above the MSRP (ticketed price).
The Total Value Score is the strongest measure of how an item is going to preform when it hits the market.
- “PRICED RIGHT”:
People are willing to pay close to or above the ticketed price or more.
Value Score Interpretations
High Value Score: 7-10
Medium Value Score: 4-6
Low Value Score: 1-3
*Depending on the companies they might have different interpretations of these scores
Ticket price
Is the designated/assigned price of the garment. Either based on your own selling history or suggested by the manufacturer.
Model Price
SIMPLY:
The expected price people are willing to pay for an item. It combines pricing data and customer sentiment to predict the AUR (Average Unit Retail) over the product’s life.
The Total Value Score is created by weighing consumer feedback based on how they respond to 3 factors:
1) Reference Items (The number of reference items affects the quality of results.)
2) Pricing
3) Sentiment
Sentiment score
a numerical value that represents the overall positive or negative feeling expressed in a piece of text
- Unlike the value score, sentiment is not weighted
- Sentiment is a direct representation of all the customer responses
- Use customer comments to understand why they like or dislike it
- These can be used to identify potential design changes
HOW TO INTERPRET RESULTS:
Interpreting results based off 2 things:
1) Total value Score
2) Sentiment Value
High- Medium: Greater than of equal to 45% (≥45%)
Low: less than 45% (<45%)
Give an action for:
High High
High Low
Medium High
Medium Low
Low Low
high high - reccomended buy
high low- maintain buy depth
medium high - potentially reduce price
medium low - make design changes
low low - do not buy if possible
