Use Case
Pricing Analysis
Here's why you need Pricing Analysis
Understanding how price impacts demand and profitability enables informed decision-making crucial to your business's success.
Pricing analysis is pivotal as it assists in determining the ideal price point that maximizes both profits and customer satisfaction.
Advantages of Pricing Analysis
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Effortlessly set up, implement, and evaluate pricing strategies using both Van Westendorp and Gabor-Granger methodologies.
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Be one step ahead by determining the optimal price range for new products before launching them and minimize post-launch sales decline.
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Overcome the challenge of identifying customers' willingness to pay (WTP) with precision by leveraging powerful methods.
Methods to include in your Pricing Analysis
Van Westendorp
Measure price sensitivity with the Van Westendorp analysis
Gabor-Granger
Find the perfect price point with Gabor-Granger
KPIs to measure
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Rarely Purchased Product Pricing
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Product Planning and Launch
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Purchase Probability
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Price Determination
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Dynamic Pricing
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Sales Planning
Essential Pricing Analysis questions
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For maximizing profitability
Can I strategically increase the price of my products without risking a drastic drop in sales? What price point would generate the most revenue?
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For finding the optimal price point
What is the ideal price point that will position your product as neither too cheap nor too expensive?
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For gauging customer willingness to pay
When does the price become too high for potential customers to want to buy?
Pricing Analysis explained
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A pricing analysis determines the willingness to pay and price sensitivity of the target group, helping in setting an optimal or ideal price for a product or service.
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When conducting a pricing analysis, there are established methods that can help researchers achieve valid results based on their research goals: Gabor-Granger (to determine price-sales function) and Van Westendorp (to determine optimal price range, willingness to pay).
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Cost analysis focuses on the cost incurred in producing a product or service, while pricing analysis focuses on the willingness to pay and price sensitivity of the target group for a product or service.
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While there are many approaches to pricing strategy, a few leading methodologies include Van Westendorp and Gabor-Granger pricing methods.
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The primary goal of a price analysis is to determine the optimal price point for a product. Depending on the method, it can also determine the price range or a price-demand function (Gabor-Granger).
More use cases & methods
Strategy
Van Westendorp
Strategy
Gabor-Granger
Innovation
Conjoint analysis
Strategy
Target group analysis
Tracking
Consumer tracking
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