Learn about the 3 key points to build robust pricing strategies by combining market research with analytics and thus make more business sense of what mathematical pricing models can suggest.
Pricing strategy is one of the most important levers to guarantee the profitability and therefore the sustainability of a company. There are different approaches to define the pricing strategy that range from financial information to competition information and customer perception. In this sense, the combination of market research and analytics can build robust pricing strategies, not only quantitatively but also qualitatively:
Key #1 – Market research from primary sources: allows to measure customer preferences towards a portfolio of products in one or several categories, from statistically designed simulated purchase scenarios.
Key #2 – Research of secondary sources: It allows complementing the research of primary sources with historical information on commercial levers such as sales prices, coverage in marketing channels, promotional activation, and seasonality, among other factors.
Key #3 – Analytics: allows statistical models to be built to measure the sensitivity of sales volumes/transactions/market share to changes in the prices of one or more products.