Pricing Research

Pricing issues are at the heart of strategic marketing, yet how often are they simply left to gut feeling or trial and error? Get it wrong and, at best, profitability will be lower than it might have been, but at worst, the future of the brand could be severely damaged or even destroyed.

If in-depth insights into the price sensitivity of your product are required, we offer a full range of pricing solutions : Price Sensitivity Module, Gabor Granger (likelihood of purchasing), Brand Price Trade Off and Conjoint analysis could provide the insight needed. Our approach is frequently based on the Price Sensitivity Meter developed by Dutch economist Peter van Westendorp.

The output will reveal the price at which:

  • Sales will be maximised
  • Purchase consideration will evaporate
  • The product starts to be considered expensive
  • The product begins to be considered a bargain
  • The quality perception of the product will be questioned

The Price Sensitivity Meter analysis can be supplemented by a value comparison exercise in which respondents are asked to indicate the expected relative price position of the target product on a non-price marked scale against a range of benchmark products selected from competitors and adjacent markets.

A value comparison exercise is particularly helpful in categories in which consumers’ knowledge of precise pricing is ‘fuzzy’ such as in categories subjected to regular promotional activity. Using the known benchmark prices, the results can be translated back into ┬ús for the test product.

Price sensitivity testing can be conducted alone or in conjunction with other research. It can be conducted face to face or remotely by post or on-line.