Price surveys provide key information necessary to shape the pricing strategy of the company against the activities of competitors and concerning the customers’ possibilities, expectations, and the likelihood of purchasing a given product or service.
In ABR SESTA, we investigate current prices and perform pricing tests. Surveys of current prices are usually performed in modern and traditional retail outlets. We prepare price lists for the entire shop range as well as for particular categories or individual products. We combine regular prices with price promotions (monitoring advertising leaflets). Palmtops with bar code scanners enable interviewers to verify recorded prices in the shop, by reference to price brackets. We perform price surveys both for manufacturers and for retailers. We carry on over 90,000 retail audit surveys every year.
There is a number of research methods which allow to determine the optimum price. The selection depends on whether the product is already on the market, whether it is to be tested against competition, whether we wish to know the price flexibility of demand or estimate the size of demand. The methods can be used separately or in combination, which allows for cross-verification of results.
Price survey methods:
- BPTO (Brand Price Trade-Off) – it is a particular form of application of the conjoint analysis, which analyses the product’s/ service’s price together with the brands in reference to competitive brands. It is a method of analysing the price flexibility of demand. It allows to test various prising scenarios and estimate the share of tested products, services, brands or packages/variants.
- PSM (Price Sensitivity Meter). This survey method allows to determine the product’s pricing flexibility. It may be used to determine the range of the most adequate prices for the tested product.
- DPA (Direct Price Acceptance). This survey is used to test a set of predefined prices and determine purchase probability.
- Demand Two – involves testing a predefined product price by asking about the probability of purchase. The method is used to estimate the purchase volume as a sum of test purchases and repeat purchases.
Promotion monitoring
Monitoring price promotions is a survey of all promotional tools as well as additional displays in a category or for a list of selected products. It allows to optimise manufacturer’s actions by providing data regarding:
- brand’s/ manufacturer’s share in the shop’s/ chain’s promotional activities,
- number and type of applied sales promotions,
- depth of applied promotions,
- manner of combining sales promotion tools,
- efficiency of promotions in combination with sales data.
Analysing products
Product testing is aimed to discover the shopping opinions, preferences and intentions of potential customers regarding a given product or group of products. It may cover competitive products for comparison purposes.
Product testing is particularly valuable when launching a new product or modifying an old one as it permits to indicate factors which help shape an effective promotional and production strategy.
Main research problems include:
- discovering strengths and weaknesses of the tested product against competitors,
- selecting appropriate product variants in accordance with consumer preferences,
- estimating product life cycle.
Analysing product packaging
Packaging tests should be performed when a new product is launched as well as when the packaging is significantly modified.
Main research problems include:
- assessment of the packaging in terms of function: graphic, utility, promotional, informational,
- verification of the packaging’s impact on purchase process,
- verification of the packaging’s impact on brand and product image.
Packaging tests are performed by means of quantitative (e.g. Blind test, Central Location) and qualitative (e.g. FGI, IDI) methods.
Database of product pictures and dimensions
We take product pictures which may be used for planograms (72 dpi) as well as catalogues and advertising leaflets (high quality). The base includes, among other things, product name, brand, EAN code, categorisation, dimensions (width, height, depth).
