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Product pricing research Definition

Research used to measure consumer sensitivity to different prices for a product.

Product pricing research is the process of evaluating how much consumers are willing to pay for a product or service. It helps businesses identify optimal price points that balance consumer demand, perceived value and profitability.

What are the key aspects of product pricing research in marketing research?

• Measures price sensitivity and elasticity.
• Identifies perceived value vs. actual price.
• Uses methods like Van Westendorp, Gabor-Granger and conjoint analysis.
• Tests different pricing tiers and bundles.
• Assesses competitive pricing and market context.

Why is product pricing research important in market research?

Product pricing research helps companies avoid pricing too high (which can deter buyers) or too low (which can erode margins). Understanding the price-value relationship directly impacts product profitability, positioning and market acceptance.

Who relies on product pricing research in marketing research?

• Pricing and revenue optimization teams.
• Product managers.
• Marketing strategists.
• Finance and executive leadership.
• Sales and retail partners.

How do market researchers use product pricing research?

Market researchers use product pricing research to understand how consumers react to different price points and what they perceive as fair value. By conducting structured surveys, price testing experiments and advanced modeling like conjoint analysis, researchers can simulate real-world trade-offs and predict optimal pricing strategies. These insights inform decisions around price positioning, promotional planning, bundling and even product development. The goal is to find a pricing structure that meets customer expectations while maximizing revenue and competitive advantage.