Price is the quint essential thing which plays a major role in the purchase of a product or service by a customer. In order to determine the right price as low price would create space for suspicion about quality and high price may create the image of offering poor value for money.
In this way, the important thing for a product or service is to set the right price which can cater to the target consumer segment without any burden.
There are many methods followed in researching about the right price which are:
1. Gabor Granger – Customers are asked whether they would buy or not at random prices and their answers are collaborated in the form of high agreement price zone
2. Price Sensitivity monitor – Gives the acceptable price range of a customer
3. Conjoint Analysis – Gives the analysis that goes into a customer’s brain while making a trade-off in valuing a product
4. Brand Price Trade Off (BPTO) – BPTO makes up the impact of price increases or decreases on a product by displaying all the brands at a time.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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