Price often has a significant impact on the decision to purchase a product, but it is not the only factor that is important. Complex products and markets require a thorough analysis of available data before making snap decisions to raise or lower prices.
One of AIM’s clients wanted to discover the price sensitivity of one of their products. The project was complex due to the product’s multiple add-on features and options. In addition, the client requested pricing information to be segmented across regional territories and compared to competing brands. To add to the complexity, the project was time-sensitive and needed to be completed quickly.
AIM’s Strategy Under a Tight Deadline
Since time was of the essence for the client, AIM designed a research plan that could quickly consolidate qualitative input from the field with quantitative data. In order to accurately measure critical pricing information from the client’s reps and distributors, AIM’s strategy was twofold:
- AIM contacted reps and distributors by phone, email and fax and sought legitimate sales invoices with current pricing offers for the client and their key competitors.
- AIM created a blind survey and sent it to a sample of random distributors and buyers. The goal of the survey was to compare with sales invoices and further refine the pricing structure for the client’s products.
After expediently tabulating and analyzing surveys and primary pricing data, AIM was able to clearly define the market pricing structure by region, product options and package offers. Additionally, the research was instrumental in identifying non-price related issues that were impacting the brand purchase preference of the market.
Before committing to price changes, AIM’s client had comprehensive data available from surveys and invoices, as well as a better idea of non-price-related issues that were impacting sales of the brand. Instead of reacting with a strategy based on incomplete information, AIM’s client was able to make fully informed decisions on its pricing structure, with research to guide them.
Price sensitivity is a variable that can sometimes yield unexpected results. Interested in learning more? AIM’s comprehensive data analysis can help your business clarify a complex issue.