Conjoint-based procedures often are first choice with price optimization. Especially if you want to achieve a comparatively high degree of measurement accuracy with a limited research budget. The strength of a conjoint analysis primarily is its participant-friendly approach: The participant makes purchase decisions from a choice of available products in a situation resembling everyday life. Due to the variation of prices, product features, packaging details and other characteristics, the objective of the study is hardly recognizable to the participant and the focus is not too much directed on the price when the preferences are identified.
The review of several options in price communications can be subject of a conjoint analysis as well. Because sometimes it is not the price itself that needs optimization, but the way the price is communicated. In this context a revision of promotion prices could be accomplished, for example.
We can also determine the benefit in money’s worth of individual product features with a conjoint analysis. This can be integrated into your business case. That way you can determine the impact on your margin and decide accordingly.
If you have market data at hand, for example on awareness, distribution, customer reach, market shares etc., we can adapt our conjoint model with a calibration to market conditions. That way, we achieve an even more realistic market simulation leading to even more valid results and can optimize the pricing for your products in a targeted way.