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In the technical areas of marketing, research pricing is the most important factor. Knowing how much customers are willing to pay, is much more important than knowing what do the customers like. To know what the optimum price point is to maximize profit, market share, revenue. The Gabor-Grang1er technique, Van Westendorp Price Sensitivity Monitor, Brand Price Trade-off and Conjoint Analysis are the four main approaches of digitGaps to pricing research. Selecting the right technique completely depends on upon the kind of problem you are trying to solve. Some of these techniques can be used off- the- shell.
When it comes to setting prices, market context, positioning and price strategy are extremely important factors that are considered. Knowing what are you trying to do with the prices is basically very important i.e. whether you want to win share or you are interested in maximizing your profit. For example, prices typically fall over time in technology market whereas total cost in business markets is may be more important than absolute price. To estimate demand optimum points and competitor’s responses, price modeling and market models are a fundamental part of pricing research.