GfK Consumer Price Lab
Optimize your product-price architecture to maximize both consumer perceptions of product value and your business revenue.
Preserve profit margins through the power of value-based pricing
Price is the moment of truth. It is where your product architecture and marketing strategy meet with your consumers’ perception of overall worth
Balancing market competitiveness with profitability means finding that pricing sweet spot. The point where consumers’ ultimate value equals what they are willing to pay for your products and ranges.
The right pricing strategy means you can maximize revenue in line with consumers’ value perceptions and continue to drive this value upwards.
Stop guessing. Know the impact before you act. Calculate your risks within a simulated test environment and seize the most rewarding outcome.
2.75x
the impact of long term brand building in reducing consumer price sensitivity (GfK Syndicated Brand Architect Survey, Tech & Durables)
11.1%
The average boost in profit in response to a 1% improvement in price optimization(Harvard Business Review)
58%
of global consumers have cut back on everyday necessities due to rising prices (GfK Consumer Life)
GfK’s integrated approach
We combine advanced survey-based conjoint and modeling science to dissect and understand:
By partnering with GfK Consumer Price Lab, you will receive the powerful data you need to unearth consumer preferences, understand the perceived value product features, and calculate price sensitivities. From there, you can simulate the impact of your pricing decisions, before you make them.
Consumer Price Lab will take you beyond simulation to optimization. It reveals the ultimate pack-price architecture to maximize revenue share across portfolio. Enabling you to bring consumers’ ultimate value in line with what they’re willing to pay – even in the face of economic turbulence and fierce market competition.
- which parts of our clients' price-product architecture drive consumer’s perception of value
- consumer price sensitivities and willingness to pay at different price points
By partnering with GfK Consumer Price Lab, you will receive the powerful data you need to unearth consumer preferences, understand the perceived value product features, and calculate price sensitivities. From there, you can simulate the impact of your pricing decisions, before you make them.
Consumer Price Lab will take you beyond simulation to optimization. It reveals the ultimate pack-price architecture to maximize revenue share across portfolio. Enabling you to bring consumers’ ultimate value in line with what they’re willing to pay – even in the face of economic turbulence and fierce market competition.
How GfK Consumer Price Lab works
The Consumer Price Lab App is an always-accessible online application that makes it easy for you to test and draw practical actions from our unique combination of advanced conjoint, survey-based modeling science and sophisticated simulation and reporting tools. All this is underpinned by the expertise of our highly experienced marketing science, pricing and category teams. The conjoint data is calibrated to our gold-standard sales data, consumer panel data and/or other third-party sources, to enhance accuracy and reflect market realities. This pricing strategy testing lab allows you to calculate your risks within a simulated test environment to seize the most rewarding outcome.
By simulating the results of different pricing and product mix scenarios, you can:
Unearth consumers’ preferences and perceived value in product features
Identify whether you are leaving money on the table by optimizing your pricing across your portfolio to maximize total revenue
Understand how consumers will react to changes in your (and competitors’) pricing, product mix and value offering
Understand the impact of your pricing decisions on the perceived value of your product
Gain insights into consumer group price-sensitivity and understand how you can adapt your product architecture to bring the right product at the right price.
Open wide the possibilities for your price-product architecture
GfK Consumer Price Lab looks beyond your current brand architecture to analyze the impact and cannibalization of intended product innovations, or changes to your current product offerings for which no historical data is available.
GfK Consumer Price Lab’s modeling capabilities can include hundreds of existing and innovation (new) SKUs, covering adjacent categories as well as the core category.
Reclaiming value with the right pricing strategies
Which pricing strategy should you use in times of stagflation? Understand how strategic pricing can reframe value for your company now.
FAQs
-
What is conjoint modeling?
Conjoint is the leading methodology for understanding which elements of the proposition customers value and at which price points. It is an extremely powerful statistical tool that pulls out which elements of a proposition customers really value/trade off (price included), and that will influence the purchase decision, through a survey that mimics real-life shopping experiences and observes consumer choices. These shopping experiences are repeated multiple times so the shoppers’ purchase intentions can be measured at a range of price points and competitive contexts.
It offers considerable advantages over direct questioning techniques by teasing out which elements really matter to consumers, rather than taking what respondents state as being important at face value. It allows us to model any combination of features in a near-market like environment even though only a sub-set of propositions have been tested and to test scenarios that might not be present in the real market. Respondent-level data allows for subgroup analyses, consumer segments and contexts for the development of tailormade strategies for different groups of customers, channels and contexts.
-
What is price sensitivity?Price sensitivity is a measure that reveals the extent to which demand changes when the price of a product or service changes. The price sensitivity of a product varies with the relative level of importance consumers place on price compared to other purchasing criteria. Generally, the lower the price sensitivity the higher the premium that a brand can charge compared to its competitors.