Kiev international institute of sociology
Head of market research
Price is one of the most important parts of marketing. Its study cannot only optimize sales strategy, but also helps maximize the benefits of the company. Therefore, it is very important to know how much the consumer is willing to spend on the product for any manufacturer or supplier.
There are several approaches to the price study and all of these approaches can be implemented using techniques «Price Vector».
Methods «Price Vector» - is a comprehensive study on the calculation of the optimal price of the goods.
This method of research is aimed at addressing rates of such problems as:
These problems, in turn, is achieved by various studies. Conventionally, they can be divided into direct and indirect. To direct research study characterized the views of consumers about how much he is willing to pay for a product. For indirect research is important the actual process of buying in which we study the effect of price changes on intention to purchase goods.
1. Price Sensitivity Meter
Allows us to define an acceptable range of prices for the consumer based on the perceived value of the product.
To do so, respondent is familiar with the appearance of the product being tested, and its description, and then answers questions about the price of the product, determining the profitability of purchase.
2. Stair of prices
Allows us to specify a probability level of demand for this product at a certain price.
To do this, the respondent is presented a description of the product and a certain price for it and that, in turn, assesses the likelihood of purchasing the product for a specified price. Then we show respondent the same product with different price and ask him for make a choice again.
This research helps us to predict the actual response of consumers on price changes in market conditions because we study the behavior is of respondents in a situation of actual purchase.
In the study, he provided a few products at a certain price, of which he must choose one. After all the selected product price increases (or the price of other products reduces), and respondent is requested to make a choice again.
4. Simulation of the buying process
One of the types of indirect studies, in which we can determine the optimal price of the product.
During the study we are putting a showcase of products, which corresponds to the alignment of the test product. Respondent supplied to a display case and asked to choose which of the brands he would have chosen for these prices. Then the prices increase, and we ask the respondent to make a choice again.
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