Pricing and Product Optimization
METHODS FOR PRICING RESEARCH
Several different research methods are commonly used in pricing research—each with their own strengths and weaknesses. This document discusses five techniques that are commonly used by survey researchers: 1) Direct willingness to pay questions; 2) Concept tests; 3) van Westendorp price sensitivity meter; 4) Ratings-based conjoint analysis; and 5) Discrete choice modeling.
VAN WESTENDORP: PRICE SENSITIVITY METER
Though the Price Sensitivity Meter is often thought of as a tool for selecting the “Optimal Price Point” for a product, this application is neither theoretically nor practically appropriate. Despite this, we have found that the questions can provide useful diagnostics on current price perceptions in a market.
ADVANCED ANALYTICAL METHODS FOR SENSORY RESEARCH: IDENTIFYING MARKET OPPORTUNITIES AND INDIVIDUAL PREFERENCES
This document discusses the application of multivariate research methods to sensory research. Specifically, this document describes an approach that MarketVision has found extremely useful in identifying market opportunities and guiding product enhancements for sensory products.
TOTAL UNDUPLICATED REACH AND FREQUENCY ANALYSIS: IDENTIFYING AN EFFICIENT PRODUCT PORTFOLIO
TURF (Total Unduplicated Reach and Frequency) analysis is a technique used in marketing research to maximize the unduplicated reach of a product line while minimizing that product line’s depth. The purpose of this document is to show how TURF analysis can be used to guide product mix.