Pricing & Demand Analysis
Measure the "take rate" for new products and services among target customers and uncover the range of fair market prices that will maximize market share or revenue.
For most consumers, price alone is not the key factor when a purchase is being considered. Price is one of several important variables customers evaluate; but trade-offs are made in consumers' minds to determine what they value about the offering, and therefore at what price they are "deal-prone."
Understanding the value consumers place on specific features of a product can be determined by either allowing them to configure their own optimal products, or presenting them with an orthogonally configured array of products to which they make a preference decision—a traditional choice-based conjoint analysis.
When evaluating price in the context of the chosen product configuration, buyers can examine the offering and formulate a rough notion of what they would expect it to cost, or at least the range into which they would expect it to fall (what one might call the "Theory of Reasonable Prices"). Secondarily, "Price Signaling Quality" assumes that consumers will evaluate some prices as suspiciously low for the product, signaling poor quality.
All of these components taken together provide rich and relevant feedback to our clients about how consumers evaluate product offerings in real-world scenarios.
Contact one of our Research Consultants to learn how we can help you achieve your marketing goals.