Scribd
Upload
5 views6 pages

Pricing Research for Optimal Revenue

The document discusses pricing research which is used to determine the optimal price point for a product or service. Pricing research focuses on customer price sensitivity and aims to answer questions about price-volume relationships, revenue and profit maximization, and the impact of price changes on market share. The research involves surveying customers about their purchase intent at different price points to estimate demand curves and calculate price elasticity.

Uploaded by

Ankur Yash
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
5 views6 pages

Pricing Research for Optimal Revenue

The document discusses pricing research which is used to determine the optimal price point for a product or service. Pricing research focuses on customer price sensitivity and aims to answer questions about price-volume relationships, revenue and profit maximization, and the impact of price changes on market share. The research involves surveying customers about their purchase intent at different price points to estimate demand curves and calculate price elasticity.

Uploaded by

Ankur Yash
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

PRICING RESEARCH

Prepared by:Pankaj Thaman

What is Marketing Research


The systematic and objective identification, collection, analysis, and use of information for the purpose of assisting management in decision making related to the identification and solution of a problem in marketing. In simple words, It is a process of collecting the information for the better working of an marketing organization.

Pricing research
Pricing research is used to answer one simple question; are you charging the right price? Many companies do not charge the price where they maximize revenues or profits. Therefore, they leave money on the table or lose revenue at every transaction. Both errors are significant because it directly impacts your bottom line

Contd..
Pricing research usually concentrates on customers' sensitivity to pricing. This price sensitivity is driven by the nature of the market, the target within that market, the differentiation level of your product or service, and the value of your brand.

Marketing Questions What is the price/volume relationship for our product? At what level do we maximize revenues? Can we afford to raise the price? At what price do we maximize profits? Will price increases sacrifice market share?

Method to perform research


Customers are asked to complete a survey where they are asked to say if they would buy a product at a particular price. The price is changed and respondents again say if they would buy or not. From the results we can work out what the optimum price is for each individual. By taking a sample of customers we can work out what levels of demand would be expected at each price point across the market as a whole. Using this estimate of demand, the price elasticity can be calculated and so the optimum price-point in the market established.

You might also like