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Price Flexibility Research
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Price Flexibility Research

For the price flexibility research, the BioStat company implements such methods as:

PSM

Price Sensitivity Meter

DPA

Direct Price Acceptance Gabor&Granger method

BPTO

Brand Price Trade-Off

PSM
Price Sensitivity Meter

The method allows to determine the level of product price expected by customers and consists of asking respondents the following four questions in relation to specific products:

  • What price for a given product seems low?
  • What price for the product seems to be too low and may mean its poor quality?
  • What price for a given product seems high but acceptable?
  • What price for a given product seems too high and unacceptable?

It assumes that the price of the product reflects its quality. This method can be implemented in research on the pricing of existing products and innovative ones. It helps in positioning the product and selecting a marketing strategy in relation to the price expected by customers. It does not allow to predict future consumer behaviour in as far as price changes are concerned.

DPA
Direct Price Acceptance

It involves asking customers about the probability of buying a selected product at certain price options. In the case of positive feedback - consumers are asked about the probability of purchase using an option with a higher price; in the case of a negative assessment - the next questions relate to the likelihood of purchase using options that refer to lower prices.

  • It is used to diagnose specific variants of product prices
  • It does not allow to determine the reasons for the reluctance to purchase the product
  • It allows predicting the future behaviour of consumers in relation to price changes

It assumes that the price of the product reflects its quality. This method can be implemented in research on the pricing of existing products and innovative ones. It helps in positioning the product and selecting a marketing strategy in relation to the price expected by customers. It does not allow to predict future consumer behaviour in as far as price changes are concerned.

BPTO
Brand Price Trade-Off

Brand Price Trade-Off is a simplified version of Conjoint research. Only the product features such as brand and price are taken into consideration in BPTO research. The respondent selects a product from the list of similar good yet of different brands and in a different price range. The price of the tested product is - at the first stage of the research - the lowest. In the subsequent stages of the study, the respondent is presented with the same list of products, with the same prices, except for the price of the tested product, which increases with respect to the price from the first stage. The tests are repeated until the respondent reaches the highest product price or resigns from the purchase.

  • It allows you to measure the price elasticity of demand
  • It gives the option to estimate the loyalty level of customers of a given brand when changing the product prices
  • It allows also to determine the expected shares of the tested brand in relation to other brands with different price options
  • It allows for the estimation of various scenarios of the brand's market share in the situation of the so-called "Price war"

Research tools
used in price elasticity research. Interviews, surveys

  • CAPI
  • CATI
  • IDI

Interviews

  • CAWI
  • PAPI

Surveys

The target group
in price elasticity research.

The research can be performed on:

  • on a research sample that reflects the market segments that are the most important from the point of view of the company’s marketing strategy
  • on a general research sample of potential and actual customers in order to identify / specify the main recipients of products
Kontakt Kontakt Kontakt Kontakt Kontakt
Monika Kurpanik
Monika Kurpanik, PhD
Director of Research
Zadzwoń do nas Napisz