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Methodology & Benefits


The Pricing Lab
Methodology & Benefits

Econometric Pricing Research & Analysis for Precision Price Models

The Pricing Lab uses sophisticated data collection tools including smartphones for in-store surveys. This point-of-decision data is based on actual price impressions and purchase data at the point of sale when consumers are in the act of making purchase decisions. Therefore, The Pricing Lab’s quantitative data is more accurate than other methods of data gathering because it does not rely solely on consumer memory or basic transaction data. As a result, it is a faster form of gaining intelligence as data is sourced in real time using mobile app uploads.

Advanced econometric and statistical tools applied to this data deliver immediate, actionable insights that go beyond simple tabs and pie/bar charts.

The Pricing Lab’s Mobile, Real-Time Shopping Surveys Record: 

  • Price of selected product and other products in consideration set
  • Just-about-right and value-for-the-money evaluation of price paid
  • Brand, size, form, and quantities purchased
  • Purchase day of week, time of day, and location
  • Consumer demographics
  • Consumer attitudes, interests, and opinions

Additional Data Collection Sources Examined in the Lab:

  • Surveys — traditional online price surveys
  • Company Data Warehouse — including transaction history

Pricing Specific Descriptive Analysis Includes:

  • Waterfalls for pocket price decomposition to ensure profitability
  • Price Bands to identify competitive positioning opportunities
  • Price Trends to identify rising market prices for increased profit margin opportunity
  • Average Street Prices and Discounts to monitor and keep pace with current pricing
  • Competitor Prices to follow moves made by competitors to increase or undercut pricing

The Pricing Lab Uses Advanced Quantitative Pricing Tools:

  • Discrete Choice Models for testing the interplay of price points and product features in realistic choice settings
  • MaxDiff Analysis for testing pricing plans and messages
  • Econometric Modeling for elasticity development
  • A/B Price Testing for online dynamic assessment of price points
  • Pricing Simulators for what-if price comparisons and calculation of key business metrics

The Pricing Lab’s Use of Multisourced Data is Superior to Using
Just Scanner and Purchase Recall Data:

  • Scanner data does not factor competitive product sets
  • Scanner data does not record consumer opinions at point of decision
  • After the fact surveys depend on unreliable consumer memory of what they purchased
  • Scanner data does not factor consumer-specific demographics

Please call us at (609) 936-8999 to discuss how we can bring your products and pricing issues into The Pricing Lab to develop strategies that can earn you more market share.