The price increasingly turns out to be a powerful driver when it comes to choosing products and brands. Beyond that, it is especially important for earnings. However, large profit potentials are often wasted due to the lack of systematic analysis. Even at a very early phase of product development, modern market and opinion research can help determining the prices that fit your products or your range and make optimal use of your target group's payment acceptance.
When setting prices the focus is on avoiding two main mistakes: If the price is too high, the product will be considered by too few potential buyers. On the other hand, prices that are too low, cannot fully exhaust contribution margins. In addition to sensitivity thresholds, elasticities and price-sales-/ profit-relation, also signal effects have to be considered since the price is often used to draw conclusions about the quality of a product. Therefore the price must always go hand in hand with the positioning strategy of the brand.
- Identification of price psychological consumer types
- Role of the price in the decision-making process
- Used reference prices
- Personal price knowledge (level, structure, ...)
- Price image of market participants
- Reaction to price changes
- Willingness to pay for particular characteristics
- Characteristics that excuse a higher price
- Request for various product and price scenarios
- Optimal price for different product variants
- Gabor Granger method
- Open / aided open line pricing
- Price sensitivity measurement
- Online conjoint measurement