When developing the optimum pricing strategy in business-to-business (B2B) markets, it’s essential to have insights into how the market is likely to react when a product or service is sold at different price points. That’s where market research comes in. It informs pricing strategy by revealing likely levels of demand, revenue and profitability under different pricing scenarios.
There are four main techniques used in pricing research and I’ll explore them all in this and my next blog post (all in plain English, with real-life examples you’ll be pleased to hear). This week I take a look at the Gabor-Granger and Brand Price Trade Off (BPTO) techniques.