Janus and the Changing Face of Pricing Research
Pricing is one of the most powerful marketing levers. It represents the harvesting of all communication and brand architecture investments; it also brings a golden opportunity to communicate what your brand is worth vis-a-vis competitive offerings. Get your price right and you can maximize profit and strengthen your brand – get it wrong and you can lose revenue, confuse consumers, or even start a price war.
It's not surprising that pricing research never goes out of fashion. But ad-hoc research has its place – great business decisions are made by combining relevant market data and an astute gut feeling for how your market will react to pricing changes. Unfortunately gut feelings aren't quick to develop, nor can they be easily justified when challenged.