There are several methods for pricing surveys. Nowadays two of the most widespread and refined techniques are PSM (Price Sensitivity Measurement) and BPTO (BrandPrice Trade off).

MASMI Hungary has wide experience in the implementation of both methods mentioned.

By taking into account consumers’ perception on the price/quality relationship, a properly conducted pricing research helps determine the optimal price that meets consumer expectations and at the same time assures the highest possible revenue for the company.

The PSM method is also known as van Westendorp price test. This technique involves respondents answering a series of price-related questions about a product. For example: “At what price would you consider the product to be priced so low that you would doubt its quality?” or “At what price would you consider the product to be so expensive that you would not buy it?” Then by statistical evaluation of the answers a chart depicting the marginal prices and the optimal price point for the product will be created.

BPTO is a pricing research that points out where your product may lose or take brand share from the competition.

This pricing research simulates the point-of-sale situation and thus requires that the product be placed within a priced competitive context. We model consumer purchase decision mechanisms through exposing respondents to repeated, but each time slightly modified pricing scenarios.

For the best interpretation of the results MASMI created a software named Price Board™. Using this software optimum pricing strategy for a brand or a portfolio of brands can be determined.