Pricing Research

Value-based pricing measures how customers perceive the value delivered by a product or service and how that value influences willingness to pay. Research helps organisations move beyond cost-based pricing and capture the value created for customers. Value-based pricing research identifies the specific product features, service attributes, and brand factors that drive customer value perception and price acceptance.

By quantifying the value customers place on each product attribute, organisations can set prices that reflect the value delivered rather than the cost incurred. This approach typically enables higher margins, stronger competitive positioning, and greater alignment between price and customer perceived value.

The Gabor-Granger technique measures purchase intention across a range of price points for a fixed product configuration. Respondents indicate their likelihood of purchasing at each price level, generating a price-demand curve that identifies the revenue-maximising price point. This technique is straightforward, fast, and effective for products where feature trade-offs are not the primary concern.

The Van Westendorp Price Sensitivity Meter asks respondents four questions about price perception: too cheap, bargain, expensive but still acceptable, and too expensive. The intersection points of these curves define the acceptable price range, the optimal price point, and the range of marginal cheapness and expensiveness. This technique is particularly useful for new product categories where respondents have no reference price.

Pricing research helps organisations determine launch pricing for new products and services by assessing willingness to pay, competitive alternatives, perceived value, and expected adoption rates before commercial launch. New product pricing research addresses the unique challenge of setting prices when no established market reference exists.

Research evaluates how target customers value the new product relative to existing alternatives, what price points drive trial versus inhibit adoption, and how pricing affects the product's positioning and brand perception. The output includes launch price recommendations, introductory pricing strategies, and price architecture guidance that optimises both adoption and revenue from the outset.

B2B pricing research presents unique challenges including smaller, expert samples, complex multi-stakeholder decision-making, and price-volume negotiations. JoveWhizz adapts pricing research methodologies for B2B contexts using choice-based conjoint with customised product configurations, Van Westendorp analysis adapted for business purchasing contexts, and in-depth interviews with procurement professionals and decision-makers.

B2B pricing research typically requires a combination of quantitative methods for statistical rigour and qualitative methods to understand the purchasing process, budget constraints, and value perception across different roles within the buying organisation.

Pricing research employs specialised methodologies designed to capture realistic price-response behaviour. Conjoint analysis presents respondents with product profiles that vary in price and features, enabling the calculation of part-worth utilities and price elasticity. The Gabor-Granger technique directly measures purchase intention at different price points to establish price-demand curves. The Van Westendorp Price Sensitivity Meter identifies acceptable price ranges and the point of marginal cheapness or expensiveness.

Choice-based conjoint (CBC) simulates realistic purchase scenarios where respondents choose between competing products at different prices, providing market share predictions. All studies are designed to minimise hypothetical bias through careful questionnaire design and incentive alignment.

Pricing research replaces guesswork with data-driven pricing decisions that directly impact revenue and profitability. By understanding how customers value products and how price sensitivity varies across segments, organisations can set prices that maximise revenue, market share, or margin depending on strategic objectives.

Professional pricing research also provides defensible evidence for pricing decisions, which is valuable for internal stakeholder alignment, investor communications, and regulatory contexts. The market simulation capabilities of conjoint analysis allow organisations to test pricing scenarios without the risk and cost of real-world price changes.