We are a market research company with a specific focus on measuring willingness to pay for products and services. We operative globally and in all countries and all languages.
- Companies that want to successfully raise prices for an existing product or service without losing customers.
- Companies that are planning to expand their business into a new geographic region or country. Any new market will have a different willingness to pay and to buy dynamic for your product or service, and your new customers will buy for different reasons.
- When your company introduces a new product or service into the marketplace, and you want to determine the right price—the price that will maximize profits or sales volume.
- When you want to understand where you stand in relation to your competitors.
- When you want to identify the most effective marketing messages and marketing channels for your product or service.
- When you want to know which market segments/verticals have the highest willingness to pay for your product or service.
- When you have an underperforming product or product line, and want to fix the problem. We help you discover what would drive customers to buy the product and at what price, enabling you to maximize your sales curve.
- When you are considering an upgrade to your service and want to verify there is a need for it, and how much extra your customers are willing to pay for the upgrade.
Our mission is to measure willingness to pay and to translate that into precise advice for pricing and pricing strategy.
You get much more. First we correlate the willingness to pay measure with market demographics or market verticals, so you will know what customers have the highest willingness to pay. We then correlate the willingness to pay measure with your product or service features, with marketing messages and even your competition. The end result is that you know how to most effectively market your company’s products or services to the most desirables customers.
We have made enhancement to the popular Van Westendorp Price Sensitively Meter (PSM); the questions are asked in context of purchasing. These questions are also dynamic and can change with specific respondent The analytic side of the PSM is also enhanced, leading to at least an order of magnitude better precision of the results. To achieve this, we developed our own software which we call our Predictive Demand Engine™. The use of proprietary software also substantially speeds up the analytic process and reduces cost.
A critical part of understanding willingness to pay is the definition of the psychological price points, where small price changes lead to significant changes in sales volume. We call these psychological price points Price Walls. Conjoint analysis does not identify Price Walls.
Yes and no. Standard market research tells you what the market thinks and what it wants. If that is all you are interested in, our services are not for you. Compared to standard market research, our services enable you to identify what a market wants to buy, and at what prices, as opposed to simply what a market wants.
We know your time is limited. Therefore we have made our process very effective and easy to understand. We start with creating a research design, which is the questionnaire used in the online survey. We create the first draft, and we then complete the research design jointly with your personnel. We also together define the respondent target demographics. Once you approve the research design, we use one or several panel companies to recruit respondents to complete the survey. When the target is met, we close the recruitment of respondents and analyze the results. And after completing the technical analysis using our Predictive Demand Engine, the data is turned into actionable recommendation by our team of experienced business analysts.
Our standard projects have a fixed number of customer defined questions, and each question has a fixed number of customer defined answer alternatives. The benefits of using a template are that project can be completed much quicker, and at a much lower cost.
We use survey panel companies to recruit respondents to complete the survey. These panel companies provide us with online databases of individuals who agreed to take online surveys for cash compensation. There are survey panel companies focusing on consumers and survey panel companies focused on specific B2B markets. These companies have a detailed understanding of each member in the panel, allowing us to focus recruitment on panel members with a specifically desired profile. These respondents are led through a number of qualification/disqualification questions at the beginning of the survey to further ensure that only respondents that meet the desired profile can complete the survey.
In post-processing we then use a number of processes to weed out respondents who do not answer the questions truthfully. Among respondents initiating the survey, typically 40% – 60% are disqualified by the qualification/disqualification questions and a further 10% – 15% disqualified by the post-processing. What remains is a statistically significant number of respondents that we can trust.
We sometimes do, and this just means you have the most to benefit from our services.
It depends on your sales volume and your current price. A rule of thumb is that you will gain ten times our fees (or more) in the 12 months after our advice is implemented.