Pricing strategy surveys and online pricing studies are regularly conducted by iReach using a variety of methodological approaches including price rating scales and Van Westendorp models, both of which provide key data to forecast and predict how price changes will impact unit sales and underlying profits.
Rating scales are graded scales that indicate importance or acceptability of a given concept. Their application within pricing surveys usually involves determining the degree of importance that consumers attach to a given price level. This approach reports the importance of price in consumers’ minds and not the optimal price for a given product or brand.
In direct measurement scales, respondents are asked what the likelihood would be for them to purchase a product if the price increased by €5, €10, €15, €20, etc. This is a flexible approach that accomodates several different premium measures in the pricing scale and it is used for specific pricing studies by iReach.
The Van Westendorp model is an approach which uses a series of questions to identify key psychological price points for buyers to help product and market managers understand how pricing impacts on product consideration and purchase intention.