A promotion pricing
system produces an evaluation so as to analyze, evaluate, improve, and design promotions. The promotion pricing
system generates promotion price evaluations and recommendations for each promotion related to a target product, along with analyzing competing products from the same seller and its competitors. The computerized promotion pricing
system includes modules for carrying out necessary analytical steps, where the modules cooperate to implement a statistical
market response estimation that provide statistically stable information on customer response to promotions using either an attractive or a multiplicative model, where the model is selected dynamically. The modules include a product segmentation module, an incentive translation module, a customer segmentation module, a data aggregation module, a
model selection module, a calibration module, an evaluation module, a constraints generation module, a
cost structure module, an optimization module, a market channel performance module, and an alert module.