Pricing test is a market research type of study that allows brands to check the price before launching a product. Price is a key factor when deciding whether or not to purchase a product. Which makes understanding which price points are too high or too low an extremely important piece of information.
A Pricing test Success Story: Product Relaunch
To learn how some of our clients have carried out Pricing Test studies and the results obtained thanks to the strategies implemented based on consumer insights, continue reading:
A multinational fashion and perfume company wanted to take advantage of the success attained by one of its top-selling perfumes, creating a more premium version of it but leaving the older one in stores to mitigate any negative impact the launch may have.
The brand launched a Pricing Test to understand how consumers would respond to the launch and if they were willing to pay a 25% price increase for it. When ⅔ of respondents declared that they were happy to pay the price as long as the new product replaced the old one and became a new and empowered version of the original fragrance.
The results lead to a relaunch of the product with its original name and identity, but communicating the new formula, packaging and design as an evolution of the current fragrance and not as a more premium proposal. It was a total success, especially taking into account such a significant price rise (+25%). Consumers loved it and this was confirmed by an additional study launched by the brand 15 days after the relaunch. By year’s end, product sales had increased by 15% in comparison to the year before.
Learn all about the complete Success Story by clicking here.
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