Pricing is an important element in driving the purchase intentions for a brand, and is one of the more technical areas of market research. IMRB International offers a wide range of price testing techniques to cater to your specific needs.
Customers are asked if they would buy a product at a particular price. The respondents are exposed to the price in a randomised manner and are again asked if they would buy or not. The technique helps understand the price elasticity for the product by working out what levels of demand would be expected at each price point
Price Sensitivity Monitor (PSM)
This technique helps one identify the acceptable range of prices in the minds of the consumer and determine whether the price is set too low (creating suspicion about quality) or too high (offering poor value for money).
Conjoint Analysis is a technique that allows one to understand how people make trade-offs between different products and services and the values they place on different features. By understanding precisely how people make decisions and what they value in a product or service, one can work out the optimum level of features (including price) and services that balance value to the customer against cost to the company.
Brand Price Trade-Off (BPTO)
BPTO is a variation of the Conjoint Technique, where several brands are shown at once and the customer chooses the preferred option. The BPTO determines the impact of price increases and decreases on the sales of the brand. It is also capable of providing the response to competitors' changes in price and provides an analysis of gains and losses. The BPTO technique also helps in understanding how much premium a brand can charge.