It analyses how demand varies within the market based on the prices set. It is a valuable resource for brands and retailers as it allows you to observe pricing behaviour and learn how pricing affects business growth and development.
Ángela de la Vieja
Pricing research is a research method used to evaluate e-commerce product and service prices. It analyses how demand varies within the market based on the prices set. It is a valuable resource for brands and retailers as it allows you to observe pricing behaviour and learn how pricing affects business growth and development. Based on this knowledge, the ultimate goal of pricing research is to enable companies to define an appropriate pricing strategy to help improve their profitability.
On the one hand, pricing research provides a benchmark framework. It allows you to define a range of prices you can move between without generating losses or affecting demand. Depending on the market’s context, you can raise or lower prices, within your established range, to increase sales or boost profits. It’s like having a more accurate guide to which strategies will be most successful.
This is why this information will be key when launching new products. For example, you can better understand the expected performance of penetration pricing when launching new items in a highly competitive market. At the same time, knowing your price range and position in relation to the competition helps you to get ahead of their moves and put forward better offers.
Before starting the research, it is vital to carry out preliminary data collection:
Each methodology is different and useful for obtaining information that meets your needs. In the Van Westendorp method, the questions are open, and respondents indicate what prices they are willing to pay without bias. However, in the last technique, random prices are shown until the potential customer selects the price that they consider to be most appropriate.
Pricing research will help you update prices in your current catalogue and set prices for new products. Because there is a wealth of data, pricing tools can help you keep track of your price changes and how demand has responded. They also record your competitors’ prices. They provide a way to facilitate initial research and implement a new pricing strategy.
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