In addition to pricing techniques that have been around for long and became an industry standard (such as Van Westendorp or Gabor- Granger), we also offer Conjoint Analysis. It is generally regarded as the most effective instrument for pricing research. It answers questions such as: At what price is revenue/ profit maximized? What is the optimal price ladder for different package sizes? What is the impact on competitors if prices are changed? What are their likely reactions? Who are the most/least price sensitive customers?
Conjoint Analysis is much more than a pricing technique. It is based on tradeoffs that provide a more realistic context. Products have multiple features which must be simultaneously considered – just as in real life. This results in better discrimination between the relative importance of various product or service features. A powerful way of capturing what really drives customers to buy one product over another and what customers really value. Key benefit of conjoint analysis is the ability to produce dynamic market models – simulators that enable you to try out different scenarios.