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What factors should be considered in determining appropriate pricing for a new product and how can they be measured?
What factors should be considered in determining appropriate pricing for a new product and how can they be measured?
This white paper examines pricing strategy and methods to determine target customers' willingness to pay (WTP). It examines the role of qualitative research and quantitative research to identify market opportunities and to determine the price point that best matches the WTP. The note uses examples of different consumer products to demonstrate the pricing decision exercise. Students will learn about concepts in pricing strategy, including the van Westendorp Price Sensitivity Meter, contingent valuation, the Gabor-Granger method, and various analyses and frameworks.
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