Case Studies
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Pricing and Value Research
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Burke measures consumer price sensitivity in digestive disorders over-the-counter pharmaceutical market
Pricing and Value Research
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Business Situation:
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Our client's dominant brand was being threatened by the growth of private label brands in its category. It was unclear if the price variable in the marketing mix was optimized. Burke was selected because of our proprietary pricing protocol, which had been successfully used by this client to optimize pricing for other brands in other categories.
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Research Objectives:
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- Determine the optimal price for the client brand
- Understand how consumers react to price changes, e.g. is the brand price elastic or inelastic?
- Model a demand curve
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Method:
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Mall intercept data collection. Burke's PRIMAR pricing protocol was used among a sample of category users.
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Outcome:
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Measurement of consumer price sensitivity to our client's brand and competitive products was obtained. Based on identification of a relatively elastic demand curve, the client implemented a price reduction, which led to increased market share.
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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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