Pricing research is very challenging as most pricing studies present intrinsic limitations.
For instance
Most
pricing studies do not allow interaction of pricing
with more than two other factors. They are not able
to simulate real life shopping scenarios where customers
choose between different brands.
Some pricing studies
tend to over sensitise customers to the pricing component,
thus leading to biased results. At analysis stage, pricing
is singled out and evaluated outside the real
multi-brand decision, hence making the context leading
to
wrong pricing decisions.
Asia Insight has a wide experience in conducting pricing studies
for our clients. We have developed a pricing study framework
that utilises a combination of direct questioning and trade-off
approach. Our framework:
Minimises
biases and sensitisation of respondents to pricing
Reflect actual market
situation by allowing trade-off of multiple consideration
factors offered by client vs. key competitors
Allows a more holistic
understanding of the interaction between pricing, product
concept, product features, brand name, etc.
Multi-faceted and multi-dimensional, our
approach to pricing research is based on the use of various
Conjoint Analysis techniques. Through the use of a simulation
software, we are able to predict various market changes as well
as customer reactions.
As such techniques are rather sophisticated,
and results would ultimately be used by various departments
such as business planning, marketing and product development,
Asia Insight is often invited to conduct full-day workshops
in order to educate our clients on the techniques used, thus
ensuring that our clients can use the tools and results provided
in the future. Asia Insight provides training and consultation
on the usage of the simulation software and of the results.
Our clients feel free to tap in our minds at any time to see
how the results can be used to make internal decisions.
