Optimize your pricing and find the optimal price point.
This basically asks the consumer, “would you buy Item A at price B” and the questions continue until the highest or lowest acceptable pricing thresholds are reached.
Use the Price Sensitivity Measurement Approach to find the optimal price point in the range of acceptable prices.
Ask respondents four questions and plot their answers on a graph:
- At what price would you consider the product to be so expensive that you would not consider buying it? [too expensive]
- At what price would you consider the product to be priced so low that you would feel the quality couldn’t be very good? [too cheap]
- At what price would you consider the product starting to get expensive, so that it’s not out of the question, but you have to give some thought before buying it? [expensive]
- At what price would you consider the product to be a bargain, a great buy for the money? [cheap]
The optimal price point for your product will be the intersection between the consumers who thought your product to be too expensive and those who thought it to be too cheap.
Use Monadic Concept Testing to gauge how different groups of respondents react to different prices for the same product.
Conduct a Discrete Choice exercise to approximate the process consumers go through to make a purchase decision.
This approach involves presenting respondents with features of the product, the brand, and the price, to gain a multivariate look at the factors in their decision process, and enables the construction of a pricing and sales model that allows for elasticity.
Use A/B testing to measure actual buying behavior and eliminate any discrepancies between the theory and reality.
Start with the same price, two different sales descriptions or propositions, and see which one triggers the most sales.