Use Case

Pricing Analysis

Gain deep insights into customers' willingness to pay. Tap into the very heart of consumer behavior and set the optimal price point for your product or service. 
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Here's why you need Pricing Analysis

Understanding how price impacts demand and profitability enables informed decision-making crucial to your business's success.

Pricing analysis is pivotal as it assists in determining the ideal price point that maximizes both profits and customer satisfaction.

Advantages of Pricing Analysis

  • Hero-Icon_Flexible
    Effortlessly set up, implement, and evaluate pricing strategies using both Van Westendorp and Gabor-Granger methodologies.
  • Hero-Icon_Recognise
    Be one step ahead by determining the optimal price range for new products before launching them and minimize post-launch sales decline.
  • Hero-Icon_Cost
    Overcome the challenge of identifying customers' willingness to pay (WTP) with precision by leveraging powerful methods.

Methods to include in your Pricing Analysis

Method

Measure price sensitivity with the Van Westendorp analysis

Conduct a Van Westendorp Analysis and discover optimal price ranges that balance customer demand and profitability.
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Method

Find the perfect price point with Gabor-Granger

Find out the optimal price point to increase sales volume, using the Gabor-Granger Method. Fine-tune your pricing strategy, delight your audience and maximize your sales volume for unparalleled business success.
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KPIs to measure

  • Hero-Icon_Price

    Rarely Purchased Product Pricing

  • Hero-Icon_Rocket

    Product Planning and Launch

  • Hero-Icon_Online-Shopping

    Purchase Probability

  • Hero-Icon_NPS

    Price Determination

  • Hero-Icon_Break-even-point

    Dynamic Pricing

  • Hero-Icon_Cost

    Sales Planning

Essential Pricing Analysis questions

  • For maximizing profitability

    Can I strategically increase the price of my products without risking a drastic drop in sales? What price point would generate the most revenue?

  • For finding the optimal price point

    What is the ideal price point that will position your product as neither too cheap nor too expensive?

  • For gauging customer willingness to pay

    When does the price become too high for potential customers to want to buy?

Pricing Analysis explained

  • A pricing analysis determines the willingness to pay and price sensitivity of the target group, helping in setting an optimal or ideal price for a product or service.
  • When conducting a pricing analysis, there are established methods that can help researchers achieve valid results based on their research goals: Gabor-Granger (to determine price-sales function) and Van Westendorp (to determine optimal price range, willingness to pay).
  • Cost analysis focuses on the cost incurred in producing a product or service, while pricing analysis focuses on the willingness to pay and price sensitivity of the target group for a product or service.
  • While there are many approaches to pricing strategy, a few leading methodologies include Van Westendorp and Gabor-Granger pricing methods.
  • The primary goal of a price analysis is to determine the optimal price point for a product. Depending on the method, it can also determine the price range or a price-demand function (Gabor-Granger).

More use cases & methods

Strategy

Van Westendorp

New product planned? Determine price sensitivity and price willingness in advance.
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Strategy

Gabor-Granger

This guide explains how willingness to buy and price sensitivity are measured using the Gabor-Granger method.
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Innovation

Conjoint analysis

Exceed customers' expectations by offering the perfect combination of features at the right price point. Some call it "mind-reading", we call it "conjoint analysis".
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Strategy

Target group analysis

Gen Z or Millenials? Yoga lovers or CrossFit fans? Get a clear understanding of your target audience to create great products that they will actually need and love.
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Tracking

Consumer tracking

Understand how consumers think and what drives their choices. From purchase frequency to product use, to drivers and barriers - we've got all the answers you need, in real time.
Read more

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