Contribution research your market, provide facts, and advice on:
Feature and product preferences
What importance do your customers assign to the different feature options, and how much are they willing to pay for each of them?
Concept interest and market potential
What share of the target group expresses buying interest and to what extent will they use the product?
Price models and price level
Which pricing model best exploits customer value, and at what specific prices?
Product portfolio cannibalization
Will the new product cannibalize on the existing portfolio, and if so, to what extent?
Segmentation
What price segments exist in the market and what is the product- and price combination that yields the highest market share?
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Client Case
Situation
Based on an internal estimate the client had entered a price of $55 into the business case for a new product.
The return on investment would only be marginal, if any, at that price.
Our task
Wanting higher price reassurance, the client asked us to research the optimal market price before the product was released for the development stage.
Approach
A choice based conjoint analysis was conducted among target group members in the US.
Conclusion
Our research proved the optimal price to be $99. We also found that there were some features which the customers did not value, thereby providing development time reductions.