Market research checklist! How to research product pricing.
Pricing is a key component in your product strategy. It is just one component of a product or business plan. Price says a lot, so its imperative to get it right.
Here's a simple 7 point process to get actionable and insightful pricing research.
Price positioning – what are your objectives?
Pricing is a key component in your product strategy. Price says a lot, so its imperative to get it right.
Its not all about revenue, but also about brand value and positioning. So step 1 is to work out your over-arching brand and product strategy.
You also, at least for the purposes of research, need to define what it is you are testing. What features etc. Respondents can’t respond to a price about something a bit woolly!
You can however test several versions of a product or service.
What precise product are you asking about?
You also, at least for the purposes of research, need to define what it is you are testing. What features etc. Respondents can’t respond to a price about something a bit woolly!
You can however test several versions of a product or service.
As part of the pricing research it is really useful to be able to understand what aspect of your product or service is actually driving perceived value.
There are many ways to do that, and product research is a whole separate research topic. But as part of pricing research it is possible to gain some insight as well.
Support your insight with qualitative as well
As well as doing the quantitative research, do a small number of in-depth interviews as well.
See the language that potential customers use.
Understand what they immediately gravitate towards in your product or service.
Understand any current pain points so you can tweak your offering.
Build all your results back into your strategy. Make sure everything is consistent and coherent, make sure your revenue generation is in line with strategy as well.
Lastly, review and track progress!