Research shows that each 1% improvement in price generates an 11% gain in profitability for the average company. Similar improvements in costs or volume cannot achieve the same result.*
Pricing Research and Economic Analysis
ThinkVine offers a number of research-based services to help our clients make more effective pricing decisions. With expertise in both analytical and operational pricing, ThinkVine helps clients address a number of key business needs, such as:
- Estimating price elasticity i.e. price sensitivity
- Researching customer price perceptions and willingness to pay
- Optimizing new and existing product line prices
- Analyzing trade-offs between price, brand and product attributes
- Leveraging price in the marketing mix
- Optimizing pricing across market segments and channels
Quantitative Pricing Techniques
As a marketing science provider, ThinkVine leverages a broad array of research and analytic techniques, customized to the individual needs of our clients. Pricing research techniques include:
- Monadic Pricing / Concept Testing
- Van Westendorp Modeling - Price Sensitivity Meter
- Discrete Choice Models / Choice Based Conjoint
- Econometrics (regression analysis, elasticity estimation, forecasting)
- Customer analytics - analysis of CRM and sales transaction data
- Forecasting & simulations, including agent based modeling and other complexity science techniques
More detailed overviews of pricing research and analysis are provided in the following presentations given to the Professional Pricing Society:
- How to Measure Price Elasticity
- Pricing and Segmentation
- Quantitative Techniques in Pricing Research
Pricing Audit
ThinkVine can also provide a high level diagnostic of pricing issues and performance. Our pricing audit assesses information needs, strategic issues and current program effectiveness. The audit also identifies opportunities to improve pricing performance.
Pricing Strategy and Tactics
Leveraging insights gleaned from the pricing research or diagnostic, ThinkVine can work with you to develop an actionable pricing plan to achieve financial and other strategic objectives. The pricing strategy takes into account the key issues central to any pricing decision, such as competition, price sensitivity, cost economics and competititive conditions.
Decision Support Tools That Leverage Pricing Insights
Our decision-support tools allow decision-makers to leverage the results of pricing research to learn more about their business. Results can be used to test "what if" scenarios and optimize price levels, promotions, bundling programs and competitive response. Learn more about our decision support capabilities
For additional information on ThinkVine’s Pricing and Economics capabilities, please contact Debra Patek at 513.842.5900 x102 or via email: debra.patek@thinkvine.com
