Pricing research – the bottom line
The conclusion to draw is that price research is fraught with perils of exaggeration and under-estimation. Respondents find it almost impossible to be dispassionate about prices. Expert advice from pricing consultancies is necessary. A good place to start is the Professional Pricing Society. You must still be mindful that research on intentions is only a support or challenge to executive judgement. The best test of what customers will pay is to run live experiments and monitor the results closely.
Testing what the market will bear is a better way to capture full value than mark-up pricing or following competitors’ price lists.
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