Every product has an optimal price point at which it achieves the largest return on volumes or profit. This price is related to affordability levels within the market and to the pricing of other brands. It is not sufficient to merely conduct a brand price trade-off, as this will indicate the utility of the brand, without necessarily predicting sales volumes.
Plus 94 Research’s price research techniques allow for the establishment of brand price utilities, but also inform the client about market performance at different price points.
This product is helpful in determining the optimum price for the product, is also useful in deciding on a market entry price, and what the effect of aggressive pricing would be. It models market share positions based on price elasticity. Therefore, the marketer can see what the effect of dropping or increasing their price would be, and what the effect of competitor price changes would be..