Conjoint Pricing Simulation is a statistical technique that we use to understand how people value different aspects of a product, a situation, and decision making. We use this technique to identify the optimum price point and the most valuable product or scenario qualities before a new offering is placed in front of its audience.
The outcome is an accurate model that depicts the price ranges, features and other value scenarios which can drive your product or service strategy.
Purchasing decisions in the real world are rarely as simple as they are modeled in survey research environments. Simple either/or tradeoffs frequently leave a lot to be desired when it comes to evaluating how potential buyers value the various options of a real-world product. Our Conjoint Pricing Simulation is used to quickly and easily identify valuation in complex real world situations where potential buyers do not face simple either/or situations.
How it Works.
In a survey environment, we create several scenarios with randomized qualities and price points assigned to each. When analyzed after data collection, this technique will allow us to understand the value placed on each product benefit by our target audience. This knowledge then allows us to perfect our offering in the market, both pricing the product appropriately as well as emphasizing the benefits that will move decisions in the marketplace.