Pricing steer
The Pricing steer is a flexible steer that allows you to target category or brand buyers by using a qualifier question and additionally gives you the option to include a reference product. You can choose to include the qualifier question and/or a reference product each time you use the Pricing steer, to meet your needs.
Aims: To confirm the consumer as a category buyer then show % of respondents who will buy, and at what price. To understand what consumers will be willing to pay, using an existing product as a reference.
Example question: How much would you pay for this product?
Number of options to test: One.
Results format: Line graph showing percentage who would buy at various price points. Maximum profit-generating price calculated with options to include or exclude the unit cost price and sort cumulative results ascending or descending.
Best for: Price sense check to determine the optimal RSP/ understanding if your product can demand a premium price point compared to other SKUs.
If you choose to include a qualifier question (recommended) this will mean you can ensure you are only asking relevant people how much they would pay for your product. It uses a powerful randomised price generator, which avoids starting price bias, which can impact results.
If you choose to include a reference product (recommended) you can show consumers a similar product with a price before asking what price a consumer would pay for the product you are testing. Behavioural science shows that this technique of ‘anchoring’ increases the accuracy of the price consumers report they are willing to pay. It gives them some relevant context for their decision making and mimics the way we make decisions in real life, quickly assessing relative value and choosing using ‘System 1’ instinctive thinking.
How it works
Select the Pricing steer from the usual list of steers displayed when you select 'Add New'
The first section available is the optional qualifier question (see below). If you fill this in, only consumers who would buy your product will be asked what they would be willing to pay for it.
The second section will be the optional reference product (see below). This is where you can add a competitor or contextual product to increase the accuracy of your results. Consumers will be shown this product, with its price, before they see your product and are asked what they would pay for it.
In the next section of the steer set up you will set your price range, adding your lowest and highest price.
The preview of your Pricing steer will always show the lowest price, but the consumer will see a random starting price (either the highest, lowest or middle price point).
Preview
If you choose to use both the qualifier question and reference product, consumers answering your Pricing steer will see the following:
If they answer yes to the above, they will be shown the reference product.
Once they have clicked ‘next’ on this reference product, they will be shown your product with a randomised starting price. The price shown to the consumer will be either the lowest, highest or middle price.
The price generator algorithm will present prices until it reaches the optimal price that individual consumers will pay. The steer will then close and this price will be recorded in your results.
Results
The results are displayed in a line chart, where you can read what percentage will buy at what price.
In this example, 65% of our consumer community would buy the product at £3.00, compared to 25% who would buy it at £5.00 and 50% who would buy it at the suggested RRP of £3.50.
The unit cost price line can be toggled on or off, as relevant.
Results are also shown in an exportable table.
If you have any questions or need further information, please contact the Help Desk or you can message using the speech bubble in the bottom right corner of the page.