Importance of Realism in Pricing Research

Except for price, marketers are usually interested in a comparative assessment of the elements of the marketing mix. For example, what factors are more important in driving brand choice? Or which consumer segment should we target? Or what product formulation would target consumers like more? Or which advertisement campaign do consumers find more appealing?

All of the above research questions are relative in nature, comparing a set of possible alternatives. In contrast, pricing research must project the relationship between price and demand, in absolute terms. Whereas some bias may be acceptable in a comparative assessment, realism is of great importance in pricing research. The factors that influence a pricing decision must be replicated in the design of the research study.

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