Optimum Pricing Market Research
This piece shows people who are wishing to optimise profit about the value of having a strong brand name in the market and the effect it has on your products and services.
Aiding Optimum Pricing Market Research
The classic theory on the economy seems to think that there is a casual relationship that forms between price and demand:
- High price – low demand
- Low price – high demand
This relationship is only the beginning when it comes to understanding the industry pricing you find yourself in today.
A lot of emphasis is based on if a product is seen as a commodity or if it is manufactured.
Commodities are differentiated and classified by standard. Their prices normally depend on supply and demand. If a commodity is believed to be running low it could have dramatic short term effects on price and demand.
Commercial vehicles are an example of differentiated products. They are usually assembled from many different components and offer a variety of features that can sometimes conflict. Buyers like to seek reliability from their vehicles and want comfort for the driver. The accessibility of parts, after sales service, low cost servicing and an efficient engine are all wanted by the buyers. One would not expect a buyer to be that sophisticated in their approach to this somewhat expensive service and most of the time they are not. Sometimes they can find the weighing up of so many different factors very difficult and so buys based on the brand.
A Strong Brand Pays Dividends
A strong brand gives people that bit more confidence than an unknown branded product. For example, a own label chocolate spread will be cheaper than the big name brand – a blind taste test will undoubtedly prove that consumers cannot tell the difference between them, but the confidence in the well-known brand shows, because people buy that one.
In the industry markets the same applies, as your market research agency will show you. A poor image will also not help your company as a brand or with customers choosing you over a more known brand.