MMR Strategy Group conducts pricing optimization research to help clients determine the most profitable price for their product or service.
Of all of the elements of the marketing mix, pricing is uniquely important. For example, price can:
- Determine whether a consumer will consider purchasing a product or service.
- Convey a signal of brand image and product quality.
- Provide a way for marketers to segment a market based on price-sensitivity.
Pricing optimization is a powerful tool that can have a strong influence on profits and market share. For many businesses, a price change of a few percentage points can have a much larger effect on operating profits. There are few decisions a company makes that can affect profitability as quickly as price. Pricing research often underestimates the impact of price on purchase decisions and satisfaction, in part because consumers evaluate price differently than other aspects of a product or service. MMR Strategy Group’s pricing optimization studies start with the understanding that customers evaluate price within a very broad context that typically includes a wide range of considerations relating to products, distribution, positioning, and other factors.
We use sophisticated tools and analysis methods to help our clients optimize pricing and determine pricing tactics, including:
- Concept and product testing methods that incorporate price in the study of new concepts and products.
- Conjoint, MaxDiff, and discrete choice methods that measure how consumers trade off price versus other attributes.
- Demand curve analyses that use pricing surveys to optimize pricing by projecting revenue and demand at different price points.
MMR Strategy Group has extensive experience measuring customers’ perceptions of price and value. Our pricing research has helped clients to optimize pricing tactics for a wide variety of products and services.