Pricing Research – What Is It And How Does It Help Companies?
Pricing research is a valuable data-gathering method that helps uncover what a customer is willing to spend money on a product or service. Employed by numerous businesses worldwide, it helps provide them with indispensable customer information needed to make informed pricing strategy decisions. As a core part of any business research strategy, the company’s decision-makers are helped with determining the ideal price point to still entice buyers and grow a sustainable business.
Planning to increase the prices of your products or services? Thinking of pricing a new product? If you are planning to do all these and more, then the key to creating an effective pricing strategy is research. By researching pricing, one can get a deeper understanding of the market’s desire to purchase, capture an elevated return on product investment, and preserve the worth of your brand.
What Any Business Needs To Know About Pricing Researches
Determining the right price for a product or service that will also maximise profit, revenue, or market share is vital in sustaining business growth. Without proper research, you are putting your company’s success to chance and risk. There are many ways of running pricing research as there are three main methodologies used; the Van Westendorp Price Sensitivity Meter, the Gabor-Granger Technique, and the conjoint analysis.
- What price would start making you think the product is too expensive?
- At what price would you begin to believe is too inexpensive and then question the quality of the product?
- At what price would you begin to believe the product is getting expensive, but you still would consider purchasing it?
- At what price would you believe the product would be a bargain?
Analysing the answers to these questions then helps in creating a range of prices that would likely be optimal.
The Gabor-Granger Technique is another pricing research technique utilised by numerous companies to help determine the demand and revenue for certain products and services. Participants are asked if they would pay a certain price for a product or service. Researchers then continue to raise the price higher each time they asked and the answers of the participants would help determine the demand for the product or service at each price point. It’s important to note though that the said technique does not consider competitive pricing.
Benefits You Get From A Pricing Research Study
Sooner or later, you will find out that choosing the right price for the products or services you offer is crucial to the success of your business. Now is not the time to compare your prices to competitors as there’s a better way of identifying price points and it’s through pricing research. Listed below are other benefits you’ll reap if you employ any of the research techniques to set a price for your products and services.
Understanding Product Value
Understanding Willingness to Pay
Achieving Right Pricing Design
Launching Products or Services at Ideal Price Points
Media Manager – The Leading Choice Of Local And Global Brands For Pricing Research
While companies may not see it at first, but it’s a good idea to look into various strategic opportunities that could generate positive return-of-investment (ROIs) to the business. In addition to customer or product experience research and others, it’s vital to not overlook the importance of conducting pricing research too. Companies seeking to optimise an effective pricing strategy should perform one soon.
Let Media Manager conduct a sound pricing research for your business. As one of the leading market research and digital marketing companies in Singapore, we have helped dozens of brands with valuable insights. Contact us by filling the form. We can’t wait to hear from you.