Case Studies
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Pricing and Value Research
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Burke research provides important pricing insight for nutraceutical manufacturer
Pricing and Value Research
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Business Situation:
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A major manufacturer of nutraceuticals was in the process of evaluating their current market pricing strategy for a product currently on the market. The product was delivered in two forms, one of which was driving the majority of the share due to the current pricing strategy. Burke was selected as the research provider due to our history with this researcher in pricing research and discrete choice design.
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Research Objectives:
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Overall, the team wanted to find the optimal pricing strategy to drive trial to the higher margin product.
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Method:
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Online quantitative discrete choice
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Outcome:
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As the price sensitivity was lower for the current higher share product, a recommendation was made to increase that price in order to drive some trial to the other product at its current price. Although switching between product forms was less frequent, the price sensitivity for the lower share product was higher, and therefore, a price increase was not recommended.
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