Pricing Evaluation

Our pricing studies discover what customers are willing to pay for your product or service, and by doing so, determine the optimal price point to maximize your profit, revenue or market share. We have a host of sophisticated pricing research techniques to help you achieve this.

Client Questions

  • At what price would customers begin to think our item is too expensive to consider
  • At what price would customers begin to think the item is so inexpensive that they would question the quality and not consider it?
  • At what price would the customer begin to think the item is getting expensive, but still might consider it?
  • At what price would the customer think the item is a bargain – a great buy for the money?

Our Solutions

We employ three approaches to pricing strategy:

  • Van Westendorp Price Sensitivity Meter
  • Gabor-Granger Technique
  • Conjoint Analysis

We focus on:

Van Westendorp Price Sensitivity Meter

This price sensitivity meter is a type of direct pricing research that constructs a range of acceptable prices for a given product. Through this method our researchers are able to construct a range of acceptable prices for a given product

Gabor-Granger Technique

This technique is a type of direct pricing that asks respondents if they would purchase a product or service at a specific price. Our researchers then change the price and ask respondents again if they would purchase the product or service. For example, researchers might ask respondents to respond to likelihood of purchase questions given the price would increase by an extra $5, $10, $15, $20 and so forth. This direct pricing technique uses the results to determine demand at certain expected price points, which can then be used to determine an optimal price point within the market.

Conjoint Analysis

We consider conjoint analysis to be the most accurate and reliable way to determine pricing. Through discrete-choice modeling, a specific type of conjoint analysis, our researchers determine the influence that both price and product features have on brand value.

Discrete choice modeling gives respondents a choice of two to five product configurations and then asks them to choose one of the configurations to help our researchers determine packaging and pricing models.

 If you would like to talk to us about your next research study

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