What are people willing to pay for what they want?
Our Price/Feature Optimization tool tells you not only how much they’ll pay, but which combination of features will make them more likely to buy.
For instance, a major automobile manufacturer was breaking new radio technology ground with a satellite radio product. Our research helped them determine both the proper mix of features and the optimal pricing. This new radio technology has taken the industry by storm, receiving rave reviews from national press with awards like “Product of the Year” by Fortune, “Invention of the Year” by Time and “Best of What’s New” in the electronics category by Popular Science.
This quantitative tool, which typically utilizes Conjoint Analysis, is used to simulate and evaluate the trade-offs consumers make regarding a product or service's features during the purchase process. More specifically, it is used to determine the optimal composition of a product or service relative to competitive offerings. By including price, we can understand price sensitivity/elasticity, thereby determining the price that can maximize revenue.
- Address consumers' product bundling preferences more accurately since this tool closely mimics the decision process
- Determine the relative importance of various product and service features
- Determine the extent to which preferences change with changes in price
- Identify possible alternative pricing strategies
- Determine the features/price that could maximize revenue
- Determine potential market shares
- Segment the market based on differing consumer preferences (e.g. certain features may be more/less important to different consumers)