Price tests

Price tests or pricing studies measure the influence of the price on the perceived attractiveness of a product or service. The objective is to establish, which price or price range would be recommendable.

We distinguish between direct or indirect price tests. In the direct method (e.g. price sensitivity measurements (PSM)), prices are directly submitted for appraisal. The four-step price survey analyses prices that are “too expensive”, “too cheap”, “acceptable” and “favourable”. This method is especially appropriate if new products are launched and if there are no reference data for pricing as yet.

Indirect price tests measure the significance or the influence of a price in the decision to buy, under consideration of further product characteristics. Indirect price tests can also include competitive products in the analysis. The method used by factx is the classic conjoint analysis, or the choice-based conjoint approach.