Pricing Research

Pricing research is often recognized as one of the most difficult to execute well. Simply asking respondents how much they are willing to pay lacks realism and can lead to bargaining behavior. Using real sales data to develop price sensitivity curves can be problematic, as prices do not necessarily vary independently and often, and the many variables that affect buyer behavior (such as competitive effects) cannot be controlled.

Choice-Based Conjoint (CBC) is considered a strong tool for pricing research. It is commonly used for FMCG (fast-moving consumer goods) and also a variety of other products and services.

Menu-Based Choice (MBC) is our latest and most advanced tool for pricing research, when the buying decision involves selecting items from a menu, especially involving a la carte choices and bundles.

We also have a few white papers on our website related to pricing research:

• Using Choice-Based Conjoint To Assess Brand Strength and Price Sensitivity
• Using Conjoint Analysis in Pricing Studies: Is One Price Variable Enough?
• Special Features of CBC Software for Packaged Goods and Beverage Research
• Menu-Based Choice (MBC) for Multi-Check Choice Experiments

Leading consumer packaged goods firms such as Procter & Gamble have presented findings validating CBC as a tool for pricing research at our recent Sawtooth Software conferences.

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