Pricing research involves first a pricing strategy assessment supported by strong pricing research capabilities. Sound pricing market research requires a broad strategic perspective together with a focus on your pricing decision options.
Pricing research finds optimum price-product-feature configurations in the context of market positioning opportunities. Pricing studies, we employ both qualitative research and quantitative research tools.
Pricing research usually concentrates on customers' sensitivity to pricing. This price sensitivity is driven by the nature of the market, the target within that market, the differentiation level of product or service, and the value of brand.
Pricing is one of the more technical areas of market research.
There are two main approaches:
1. the Gabor-Granger technique and
2. Conjoint Analysis.
Many companies sell branded pricing research packages that are just a variation on one of these techniques, however selecting the right technique ultimately depends on what the problem is we are trying to solve.
Market context and positioning are also extremely important in setting prices. In technology markets, prices are typically falling over time. Historically the price of PCs has been dropping at about 2% per month. In business markets "value-in-use" or "total cost" may be more important than absolute price.
Pricing research finds optimum price-product-feature configurations in the context of market positioning opportunities. Pricing studies, we employ both qualitative research and quantitative research tools.
Pricing research usually concentrates on customers' sensitivity to pricing. This price sensitivity is driven by the nature of the market, the target within that market, the differentiation level of product or service, and the value of brand.
Pricing is one of the more technical areas of market research.
There are two main approaches:
1. the Gabor-Granger technique and
2. Conjoint Analysis.
Many companies sell branded pricing research packages that are just a variation on one of these techniques, however selecting the right technique ultimately depends on what the problem is we are trying to solve.
Market context and positioning are also extremely important in setting prices. In technology markets, prices are typically falling over time. Historically the price of PCs has been dropping at about 2% per month. In business markets "value-in-use" or "total cost" may be more important than absolute price.