What is pricing research in marketing research?

What is pricing research in marketing research?

Pricing research is a research method which uses research techniques geared towards measuring the impact of change in prices to the demand of any product and also to determine the optimal price for new products.

What is pricing research and examples?

Pricing research measures the fluctuations in demand of a product or service to different changes in price and uncovers the optimal level of price for new products in order to maximize sales revenue.

How do you make a price study?

There are a few industry standards for this, but a model we’ve had success with is:

  1. Decide on your goals.
  2. Define your target market.
  3. Describe your product to your target market.
  4. Exploratory pricing study using the Price Sensitivity Meter.
  5. Develop models and conduct single question pricing studies.

What is Van Westendorp pricing model?

What is the van Westendorp Pricing Model? Conceived in 1976 by Dutch economist Peter van Westendorp, the van Westendorp Pricing Model is a method for gauging consumers’ perceptions of the value of a service or product. Specifically, the technique seeks to identify the price consumer interest begins to fall off.

What are the 5 pricing techniques?

Pricing strategies to attract customers to your business

  • Price skimming.
  • Market penetration pricing.
  • Premium pricing.
  • Economy pricing.
  • Bundle pricing.
  • Value-based pricing.
  • Dynamic pricing.

What is the Gabor-Granger pricing method?

The Gabor-Granger pricing method determines the price elasticity of products and services. Developed by two economists, André Gabor and Clive Granger, it has been used since the 1960s. It is particularly useful when:

What is the Gabor-Granger model used for?

The Gabor-Granger is most often used for already existing products. This model gives a directionally correct price estimate for willingness to pay for your product or service. It provides the revenue optimum price point, demand curve, and price elasticity, which helps researchers price a product right.

What is the difference between Van Westendorp and Gabor Granger method?

In contrast to the Van Westendorp analysis, however, the Gabor-Granger method does not ask consumers about their willingness to pay prices on an unsupported basis, but on a supported basis. This means that participants in a study are shown predefined prices and indicate their purchase probability as a percentage.

What are the disadvantages of the Gabor-Granger method?

Despite its advantages, one disadvantage of the Gabor-Granger method is that competing products are ignored in the survey. Thus, if respondents say that they would buy a product at a certain price, the competition may be offering a similar product at a comparable price.