Determine the ideal
selling price
Pricing decisions are always management decisions, and they are of central importance for the success of a business. INNOFACT Pricing Research supports these decisions with the most up-to-date methods and gives the client a competitive edge.
Good to know
INNOFACT has direct access to over half a million consumers via its own panels throughout Germany and delivers results of great depth. Clients from various industries collaborate with INNOFACT in order to guarantee for themselves a competitive advantage in fiercely competitive markets by providing high-quality pricing research.
TRIED AND TESTED TOOLS USED IN INDIVIDUAL APPROACHES
Questions regarding price are never just individual research questions. This is because they always touch on the entire marketing mix.
FIND THE OPTIMAL PRICE
Pricing has a different character in every market. It cannot be discerned which is ultimately the optimal price. Other aspects such as price/quality associations, price thresholds, the life-cycle of the product, and the competition need to be taken into account.
INNOFACT Pricing Research test approaches reflect these and other similar aspects. As a result, tried and tested pricing research tools that take into account both the client‘s particular questions and the specific market activity are included.
And of course, the services rendered by INNOFACT Pricing Research always contain concrete recommendations for action for the client.
USE THE IDEAL INSTRUMENTS
- PSM (Price Sensitivity Meter as per van Westendorp).
Four pricing questions (too low, value for money, only just acceptable, too expensive) open up the space in which test subjects perceive prices. As a result, statements can be made on the number of safe and potential buyers at certain price points as well as price ranges within which defined price strategies can best be implemented. - Gabor-Granger and other descriptive techniques are highly effective methods for the creation of a simple price-selling function for certain issues: The test subjects will be asked – ideally monadically – how likely it is that they will buy a product for the price given.
- Price as an attribute in conjoint analysis for certain price issues full profile conjoint approaches are suitable, in whose framework the price represents one of many qualities of the product. However, it is particularly note worthy that price in the context of conjoint trials attracts an artificially high level of attention. Consequently, INNOFACT weights the cost/benefit figures with results from descriptive techniques.