Marketing Research in Pricing

1. Marketing Research in Pricing Timucin Diktas Shihui Mang Yoong-Hwa Tan Chiu-pin Yeh

2. Pricing of Advanced Products • Four Purchasing stage • Awareness • Consideration • Evaluate • Purchase • Implications for Pricing Research • Range of price tested • Method used – Individual interview, focus group & group interview • Selection of number of price point – Minimum Five point • Conjoint Analysis – Provide information while setting price

3. Pricing Sensitivity Analysis • Price Sensitivity estimation by: • Analyze actual sales as a function of price • Lab experiments • Preference studies • Pricing research techniques: • Gabor-Granger – Buyers are asked to say if they would buy a product at a particular price • Conjoint analysis – Buyers are shown several alternative forms of a product concept.

4. Option A was clearly preferred – over 90% of respondents selecting this option Pricing Analysis for Touring • Conclusion:

5. Summary Pricing Method Selection is Based on: • Product • Traditional • Fashion • High Technology • Target Group • Budget & time constrain • Cost constrain • Time constrain • Accuracy & Credibility

6. Pricing Analysis for Touring • Subject – Ticket price of the Kennedy Space Center • Options: • Maximum access with premium price • Limited access with discount price • Methodology • One-on-one interviews among visitors • Each interview averaged 10 minutes with 40 questions • Van Westendorp price sensitivity model with other questions • Expected price, perceived value & purchase intention

7. Thank You