Archive for the ‘pricing’ Category

Articles

Pricing by location and occasion – an extreme example

In market research,pricing on June 11, 2013 by sdobney

Normally in competitive markets, prices tend to be driven down to a competitive equilibrium – or a least that is the economic theory for perfect markets. If two products are available at different prices, it’s expected that customers will choose the lowest price product. Flying back yesterday, I ran into one of the most extreme counter-examples in the airport. The newsagent and the drugstore were next door to each other, both open fronted to the concourse so you could clearly see in and both had shelves selling snacks and sweets on the wall dividing the two shops. But the price for chocolate bars on the newsagent side was ¬£0.89, while the price for exactly the same bars on the drugstore side of the wall was ¬£0.65. In other words a price difference of 27% within a matter of three metres. How was the newsagent sustaining such a big price difference?

Read More »

Articles

Musings from Sawtooth/Skim European Conjoint Conference

In analysis,conjoint analysis,market research,pricing,product design,questionnaire design on April 15, 2013 by sdobney

The Sawtooth/Skim European Conjoint Conference took place in Berlin last week with papers and advice on new or best practice in conjoint analysis, hierarchical bayes analysis and related techniques. Rather than trying to follow up on any single paper, these are more musings about how conjoint is changing (or needs to change) in a world of big sample studies and changes to research¬† in general. For instance, I was struck by the relative simplification of conjoint studies in terms of attributes and levels as presented (though not at a statistical level), while more surveys are being run with extremely large sample sizes. Obviously there are moves to newer forms of conjoint (ACBC, Menu-based etc). But that left me wondering if some radical changes to the way we use conjoint are coming/needed… Read More »

Articles

Understanding pricing

In market research,pricing on February 8, 2013 by sdobney

We run seminars on pricing research and one of the interesting things we find is how price means different things to different people in the audience. Finance/accounts have a different view and use of price than marketing people, and both have a different view to econometricians and OR specialists. For things like pricing research these different perspectives can get confused and we lose track of the fact that when setting a price we are assuming that not everyone will buy. Read More »