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.

Benefits

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.

Uses

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.