Pricing Studies
Drawing on the vast experience of our research team in the pricing and econometric sphere, we have conducted an extremely wide-range of pricing studies in virtually every industry area over the course of the last two decades.
Our research consultants determine the best approach to conducting any pricing study, considering the competitive environment and pricing strategy of each specific brand or organization
Action-Focus Holistic Approach
Our pricing strategies are fully action focused, to determine the best pricing strategy and price-points for any brand, product or service. Our clients typically receive definitive answers to key related questions such as:
- What is the wider acceptable price range for consumers in the market?
- Do different customer segments have different pricing requirements, and how?
- What is the optimal price for an existing or new product or service in order to maximize revenue?
- How does the pricing strategy fit it to the wider brand and consumer strategy in order to maximize brand equity, brand growth and penetration?
- How sensitive will existing customers be to any price hikes?
- What pricing adjustments, offers or reward schemes can result to higher retention, churn minimization and increased usage or upselling?
- To what level can my brand, product or service command a price-premium without affecting commitment to the brand or customer satisfaction?
- How does the pricing of competitors impact perceptions and the performance of our own brand, product or service?
Wide-Range of Pricing Analytic Techniques
Every pricing challenge carries its own unique circumstances. Our extensive experience allows us to select the optimal analytical approach and technique in every individual case, selecting or combining from a wide pool of options:
- Price Sensitivity Measurement Analysis – is applied through a set of carefully selected and worded questions to derive the acceptable price range in an implicit manner
- Conjoint analysis –is effective in determining the relative importance of different pricing features and components, and also in relation to other drivers in consumer choice such as product attributes, features and the brand name itself
- Price Demand Impact Analysis – is applied to determine changes in demand for different price levels. In the mathematical sense, this technique is used to determine the change in demand of a product or service with every unit increase or decrease in price.
- Optimal Price Analysis – is applied to determine the single best price to achieve all the brand strategy objectives considering customer number and revenue maximization objectives
Implementing the Right Pricing Scenario
We are committed and best equipped to identifying and pursuing the optimal approach for conducting the relevant pricing study. This depends on the unique market situation and brand objectives on hand, and calls for a differentiated approach and research paradigm in each project we engage in.
Typically, different market scenarios of consideration include:
- Pricing for a new product or service to be launched
- Price reduction for an existing product or service
- Price increases and price premiums for an existing product or service
- Reactions to competitors’ pricing changes
- Pricing features-mix changes
- Discounts and promotional offers
- Reward scheme formulation or changes