How much should your product cost? To what extent does lowering or raising the price of your product affect purchase behaviour?
With the help of the set of methods subsumed under the term ‘pricing‘, you will find answers to these questions. Which price is psychologically optimal (from the consumers’ point of view)? How shall the product be placed on the market in terms of pricing and in comparison to competitors, in order to achieve the highest possible sales? However, prices of products can always have an influence on the perception of the brand behind the product – it should be pointed out that raising or lowering a price may always have external effects.
In addition, the price can be investigated in the light of substitution or cannibalisation effects. Variation in prices leads to consumers making different decisions. It needs to be taken into account that new products should not take over significant market shares from products in your own portfolio.
Depending on the focus of the research question, we use a variety of methods:
- Enquiring acceptable price versus expected price
- Direct enquiry of purchase probability at a specific price level
- Price Sensitivity Meter (PSM) according to van Westendorp
- Context-based PSM
- Configurator approach
- Conjoint Analyses (e.g. CBC, ACBC, MBC), and, building on this, price and sales simulations
- MaxDiff as Options Pricing Model (OPM)
- Regression-based price analysis (Price Effect Model)
Do you have any questions about finding the right price? We look forward to hearing from you!