Price Segmentation

Price Segmentation

Consumers have very different needs and preferences, which are key determinants of their willingness to pay for a given product or service. Thus, to increase prices and profits, knowing which segments value a product or service particularly highly is incredibly valuable, but at the same time impossible to predict. Typically, it is not who you would expect.

Carrying out pricing research will allow you to discover the willingness to pay of each segment in your market for different products and services. Hereby, you can target the right product to the right segment, identify segments whose price sensitivity is so high they are not worth pursuing, and discover segments that you may not be pursuing already, but whose purchasing power makes them deserving of special attention.