Pricing for Researchers
Newsletter Articles on Pricing Research
‘Pricing for Researchers’ was a newsletter series that aimed to cover key concepts of pricing research, one of Pricing Solutions’ key areas of expertise. Even though these newsletters were published several years ago, we thought that some articles are still applicable to today’s environment.
Discovering Key Price Points with Choice-based Models
What are the benefits of conducting pricing marketing research? In this edition of Pricing for Researchers we discuss two key benefits: (i) the prediction of consumers’ response to price changes, and (ii) the discovery of psychological effects of price points on sales (demand). Pricing strategies based on accurate predictions of potential outcomes gives organizations a strong advantage and the opportunity to improve revenue
Global Pricing & Value Research in Healthcare
Globally, we have a network of trusted healthcare fieldwork agencies, allowing us to expand our pricing research services into other markets and meet the needs of international pricing & reimbursement executives. Our partners provide us with unique support and value-added services in local markets around the world. They assist us in the execution of a full range of qualitative and quantitative methodologies.
Computing Price Elasticities with Regression Analysis
Objective: to gain insights on how the demand side of the market works, i.e. how the demand for a product changes when market conditions (primarily the price), change.
Expanding the Pricing Research Toolbox with the Application of a Turf Analysis
For a company offering multiple variants in its product line (e.g. ice-cream flavors, perfume scents, paint colours, business/health care online forms), its business objective may go beyond estimating preference shares at specific price points. As well, it may want to understand how to best capture the widest customer base given its entire product portfolio.
Pricing Research for the Changing Pharma Sector
Based on our experience of conducting pricing research in the pharmaceutical space, as well as being part of the pharmaceutical market research community for the past 20 years, it is striking how much the pharmaceutical sector has changed, and continues to change.
STEP Pricing Research
The Strategy Evaluation Program (STEP) was developed by Eric Marder. The research tool has been used in practice since 1960. STEP was developed to test concepts for new products and pricing or selling strategies for existing products.
Regression Analysis and Pricing Research
Regression analysis employing the use of historical data is widely used to estimate the effect of changes in price on sales.
Qualitative Pricing Research
Qualitative pricing research is primarily focused on understanding a customers’ willingness to pay or perception of value.
Conjoint Analysis: Choice Models
Conjoint analysis is typically used to measure consumers’ preferences for different brands and brand attributes. Conjoint analysis revolves around one key idea; to understand the purchase decision best.
New Product Pricing Research
Leading companies such as 3M and J&J are doing a much better job of establishing value at the early stages of the product development process.
In-Market Price Tests
In-Market research is widely used to test and validate optimal price levels for both new and mature products.
Brand Price Tradeoff Analysis
Brand Price Tradeoff Analysis (BPTO) was developed in the early 1970’s and is typically used to measure price elasticity. It was described in working papers by Johnson (1972), Jones (1975), Johnson & Olberts (1991).
Monadic Price Tests
Monadic testing is a commonly used pricing research technique. It is one of the least biased and most defensible ways to measure price sensitivity. There are several methodology variations of the monadic design (e.g. sequential monadic design, paired- comparison design and protomonadic design); which generally deal with the number of products respondents are exposed to.
Van Westendorp Analysis
The Price Sensitivity Meter (PSM) has steadily gained in popularity as companies increasingly try to estimate optimal pricing. It is particularly popular for use in consumer goods and small ticket B2B products. The concept is driven by two psychological principles: “Theory of Reasonable Prices”; “Price Signaling Quality”.
Conjoint Analysis
Conjoint analysis is the most widely used multivariate research technique for establishing product attribute and price levels for both new and mature products.