Price is known as the most important parameter in the marketing mix. Companies’ pricing strategies influence sales in two ways; directly and indirectly. Price-Aid analyzes the brand quality perception of a given price and the changes in these perceptions. It also verifies the brand value.
What kind of results could you expect when you lower your prices?
- You can create an opportunity for first-time users by lowering the price.
- Lowering the price can increase brand commitment
- It can increase the level of sales
- It may be risky in that the brand image may suffer an erosion
What kind of results could you expect if you increase your prices?
- The volume of sales may go down
- Profitability will increase
- The brand image can go through positive changes
All these outcomes can be measured through Price-Aid. Price Aid is developed by Ipsos-Novaction Marketing Consultancy, a company with more than 30 years of experience in more than 250 product categories. It is a price research model employed by Bileşim International in Turkey.
Companies who use the Price Aid model can measure how much they can sell in different price categories and can see the influence of the new price on the brand image.
Price Aid model is generally used for fast moving consumer good-durable goods.
This research technique is carried out through face-to-face survey method. It is realized in a studio designed exactly like the way the product and competition products are displayed in actual sales points. The respondents’ purchasing behavior is analyzed. The way the results are gathered like this is reminiscent of the simulation technique.
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