Correct pricing is the fastest and most effective way to increase profit

Pricing is a complex area for marketing research. Not only is the aim to understand what customers are willing to pay for the product but also the price that will maximise demand and thus, maximise profit and marketshare. In research, often consumers can understate the price they will pay, so providing the right purchasing context and detail about the product/service will place the consumer in the buying frame of mind.

Direct price laddering approach (Gabor-Granger) ask consumers if they would buy the product/service at a price. The price is then changed, and consumers are asked again if they would purchase it or not. This laddering approach determines optimal purchase price point but does not take into account aspects like competitive pricing.

Choice Modelling is considered the most accurate and reliable way to determine price. It provides consumers a series of choice task selecting which option they prefer. Consumers would trade-off the price offered with varying product features. Forethought also incorporates uptake and estimate changes on marketshare through the Decision Support tool that compliments the Choice Modelling insights.

Outcomes

The price elasticity and optimal price consumers are willing to pay for your product or service

Estimate the demand or uptake for the product or service

Decision support tool to simulate many different options (Choice modelling)