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BASES Price Advisor is a tool that helps you make
better pricing decisions for a new product. Our approach allows us
to estimate the relative difference in sales potential across a wide
range of retail prices. While there are some important differences
vs. an analysis of price elasticity using retail sales data, it can
be thought of as a consumer-based pre-market analysis of price elasticity.
Marketers can employ
BASES Price Advisor at various points along the development
process. If
conducted early in the process prior to other concept testing, BASES
can consult with you on identifying the range of acceptable prices
and understanding the relative difference in volume potential across
alternatives. If conducted later in the process along with a BASES
I or BASES II, the output can be linked to a BASES forecast to
directly estimate the impact on sales volume. |
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BASES Price
Advisor offers advantages vs. traditional multi-cell price tests
in:
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Sensitivity: We can estimate differences
in sales potential across smaller price alternatives
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Flexibility: Virtually any price point of
interest will be covered in BASES Price Advisor
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Ease of Implementation:
Unlike multi-cell price tests, there is no need to choose discrete price
points prior to fielding BASES Price Advisor.
Methodology
BASES Price Advisor is a
stand-alone technique. Consumers are exposed to a new product concept
that does not include the selling price. After concept exposure,
each consumer is asked to suggest the price at which
the product would be a
“very good value”, an “average value”, and a “somewhat poor value”. The
interview proceeds to explore consumer interest in buying, using a
number of BASES measures, at each of these price points.
Analysis
The
analytical process involves a respondent-level modeling of interest at
each price point, using BASES proven expertise in integrating purchase
attitudinal data. Results are aggregated across all price points for
all respondents and the overall relationship between price and volume is
developed.
