Price sensitivity research establishes the degree to which consumers are affected by the price of the product or service
Pricing requires competitor evaluation however it should also involve research among buyers / prospective buyers to better understand the price elasticity of the product or service.
Establish Price Point
Using a quantitative research technique in order to interview enough people so we can be certain that the results are representative of the wider population, we would test the level of demand for a product or service at a series of given price points. This would establish the price point that achieves the desired volume of sales at the desired level of profitability for each sale.
The information derived from the survey can sometimes prove the ability to Price Skim – a marketer’s dream of being able to set a high price before other competitors come into the market.