PPP-adjusted pricing strategies in Digital Marketing - Mini Project: Build & Apply

PPP-adjusted pricing strategies

📖 Scenario: You are a marketing analyst working for a global e-commerce company. Your team wants to set product prices fairly across different countries by considering the Purchasing Power Parity (PPP) to make products affordable and competitive worldwide.

🎯 Goal: Build a simple pricing model that adjusts product prices based on PPP values of different countries to help the marketing team decide fair prices.

📋 What You'll Learn

Create a dictionary with product base prices in USD

Create a dictionary with PPP adjustment factors for countries

Calculate PPP-adjusted prices for each product in each country

Store the adjusted prices in a nested dictionary structure

💡 Why This Matters

🌍 Real World

Companies selling products internationally use PPP-adjusted pricing to make prices fair and competitive in different markets.

💼 Career

Marketing analysts and pricing strategists use these calculations to set prices that reflect local purchasing power, improving sales and customer satisfaction.

1

Create base product prices

Create a dictionary called base_prices with these exact entries: 'Smartphone': 700, 'Laptop': 1200, 'Headphones': 150 representing prices in USD.

Digital Marketing

# Create the base_prices dictionary with product names and prices in USD
# Your code here

Need a hint?

Use curly braces to create a dictionary with product names as keys and prices as values.

2

Set PPP adjustment factors

Create a dictionary called ppp_factors with these exact entries: 'USA': 1.0, 'India': 0.4, 'Brazil': 0.6 representing PPP adjustment factors.

Digital Marketing

base_prices = {'Smartphone': 700, 'Laptop': 1200, 'Headphones': 150}
# Create the ppp_factors dictionary with country names and PPP values
# Your code here

Need a hint?

PPP factors show how much less or more expensive products are relative to the USA.

3

Calculate PPP-adjusted prices

Create an empty dictionary called adjusted_prices. Use a for loop with variables country and factor to iterate over ppp_factors.items(). Inside it, create a nested dictionary for each country with product names as keys and prices adjusted by multiplying base_prices[product] by factor. Use a nested for loop with variables product and price to iterate over base_prices.items(). Store the nested dictionary in adjusted_prices[country].

Digital Marketing

base_prices = {'Smartphone': 700, 'Laptop': 1200, 'Headphones': 150}
ppp_factors = {'USA': 1.0, 'India': 0.4, 'Brazil': 0.6}
# Calculate adjusted_prices dictionary with PPP-adjusted prices
# Your code here

Need a hint?

Use dictionary comprehension inside the loop to create the nested dictionary for each country.

4

Complete with price rounding

Update the nested dictionary comprehension inside the for loop to round each adjusted price to 2 decimal places using the round() function.

Digital Marketing

base_prices = {'Smartphone': 700, 'Laptop': 1200, 'Headphones': 150}
ppp_factors = {'USA': 1.0, 'India': 0.4, 'Brazil': 0.6}
adjusted_prices = {}
for country, factor in ppp_factors.items():
    # Round adjusted prices to 2 decimals
    adjusted_prices[country] = {product: round(price * factor, 2) for product, price in base_prices.items()}

Need a hint?

Use the round() function to limit prices to two decimal places for better presentation.