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Pricing research Definition

Research that aims to determine how changes in price affect the demand for a product or service.

Pricing research is a set of methodologies used to understand how consumers perceive price, what they’re willing to pay and how price impacts demand, value and purchase decisions. It helps determine the optimal pricing strategy for products or services.

What are key aspects of pricing research in marketing research?

• Evaluates price sensitivity and elasticity.
• Identifies acceptable price ranges and thresholds.
• Uses techniques like Van Westendorp, Gabor-Granger and conjoint analysis.
• Tests perceived value and willingness to pay.
• Assesses competitive pricing and positioning.

Why is pricing research important in market research?

Pricing research provides evidence-based insights that help brands avoid overpricing or underpricing. It reduces risk, maximizes revenue, informs go-to-market strategies and aligns product value with customer expectations.

Who relies on pricing research in marketing research?

• Product managers setting launch prices.
• Marketing teams optimizing promotions.
• Finance departments modeling revenue impact.
• Executives making pricing strategy decisions.
• Retailers and e-commerce strategists tracking competitor prices.

How do market researchers use pricing research?

Market researchers use pricing research to explore how consumers react to different price points and pricing models. They often employ methods such as Van Westendorp’s price sensitivity meter to determine acceptable price ranges or conjoint analysis to understand price in the context of product features. Through surveys, simulations or experimental studies, researchers test how price impacts perceived value, purchase intent and competitive positioning. The results help companies make informed pricing decisions that align with customer expectations, maximize profitability and ensure competitiveness in the market.