Why do pricing research?
The question of the right price for a product or service is essential for all companies. If a price is set too low or too high this will result in a reduction in profits.
Pricing is one of the most direct influencing factors and has one of the highest levering effects on profitability. That is why it is important to determine a price that
- is accepted by customers,
- is competitive, and,
- economically optimal for the company.
Pricing research is used, amongst other things, to:
- define optimal prices for new products or services
- adjust prices for re-launches
- adjust a company’s own prices after price changes, new launches or re-launches by competitors
- determine optimal prices in order to reach clearly defined goals such as an increase in turnover or profit optimization
Pricing research is often combined with product design studies.
Anovum uses a variety of methods for the determination of the optimal price, including:
- Conjoint analyses (ACBC/ACA/CBC)
- MaxDiff / Best Worst Scaling > Further information
- Choice Experiments
- Price Sensitivity Meter (PSM) / Van Westendorp > Further information
- Gabor Granger Method > Further information
Case studies on pricing research (Pricing – Price Optimization)
- Product and price optimization: Landline, Internet, mobile phone and additional services B2B > Further information
- Price optimization mobile telephony B2C > Further information
- Optimization of product offerings and price elasticity: financial and insurance business > Further information
- Phonak: Pricing, pricing policy: Finding the best possible mix of price and conditions > Further information
To find out more about Pricing research please contact us.