Pricing Research
we primarily employ three different means of testing price in concept studies:
- 1. Monadic Price Testing
- 2. Van Westendorp Pricing Analysis
monadic price testing
Potential price points are tested monadically along with their respective products among a target group of consumers.
This method of pricing research is only feasible when the marketer has a good sense of what price range the market can bear and is typically used to evaluate relatively small variations in price. Product elements cannot change from price point to price point.
van westendorp pricing analysis
The objective of this model is to ascertain the range of acceptable prices for a product or service.
Consumer price expectations and tolerances are measured by asking for a set of price perceptions. The price at which the product or service is…
- So cheap that product quality is questionable (Too Cheap)
- A bargain (Reasonable or Right price)
- Beginning to seem too expensive (Expensive)
- Too expensive to consider (Too Expensive)
conjoint analysis
