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In our 4th monthly edition, we will dig deeper into two market research techniques that determine the price sensitivity of a product: Gabor-Granger and Van Westendorp.

Mastering these tools is vital for determining optimal pricing points, and understanding consumer value perception - especially, if one is interested in driving profitability.

Main topics of this issue:

📣 Gabor-Granger Method & Van Westendorp's Price Sensitivity Meter: what are they, what are the advantages, and where & how to use them?

📣 The Ultimate Comparison of Both Methods: similarities, differences, examples of application & how to use the right method?

Gabor-Granger Method

The Gabor-Granger method leverages consumer feedback on price points to identify a product's ideal pricing for peak revenue.

The Main Benefits of This Method:

📍Directly gauging price impact on purchases

📍Optimize revenue with ideal pricing

📍Quick surveys for swift decisions

📍Versatility across industries

Use Cases:

📍New Products: Establish initial prices

📍Market Shifts: Adjust prices for competition/costs

📍Sales Promotions: Set discount levels

Do You Know How To Use It?

📍Design Survey: Define product and set price points for a questionnaire on purchase likelihood

📍Gather Data: Survey your target audience

📍Analyze: Identify optimal pricing for maximum revenue and gross margin.

📍Implement: Update pricing strategy with these insights.

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📣We invite you to visit the Syno Academy article about the Gabor-Granger method:

Van Westendorp's Price Sensitivity Meter

Van Westendorp's method delves into how consumers view prices, helping you find the perfect price point and avoid pricing your product too high or too low, by analyzing how price affects consumer decisions.

The Main Benefits:

💡Gather direct insights on what your audience will pay

💡Determine a strategic price range

💡Understand consumer price tolerance deeply

💡Use this data for optimal product pricing

Use Cases:

💡New Products: Find appealing, profitable prices

💡Repricing: Update prices with consumer input

💡Market Entry: Analyze pricing in new areas

💡Gross Margin: Balance demand and revenue

Do You Know How To Use It?

💡Design: Set up a survey to assess price perceptions from "too cheap" to "too expensive"

💡Engage: Collect feedback from your target market

💡Analyze: Identify the ideal price range and key thresholds

💡Implement: Apply insights to set your products within the best price range

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📣Join us in exploring Van Westendorp's method in the Syno Academy article:

The Ultimate Comparison: Gabor-Granger vs Van Westendorp

What's Similar Between These Methods?

Both methods aim to fine-tune pricing with consumer feedback, acting as essential market research tools for pricing insights. They support informed decisions with data-driven insights, ensuring strategies align with consumer willingness to pay. Their scalable, standardized frameworks enable easy comparisons and efficient automation for various tests, streamlining the process of refining pricing strategies.

Differences in Use Cases:

1. Van Westendorp's method suits:

✅Assessing how price affects a product category

✅Determining general maximum and minimum reasonable prices

✅Pinpointing the optimal pricing range and mental price limits

2. Gabor-Granger method suits:

✅Setting prices for specific products

✅Finding exact prices to maximize sales

✅Gauging how price changes affect sales volume

Differences in Methodology:

✅Van Westendorp's method gauges consumer-defined price points from too cheap to too expensive, establishing an acceptable price range

✅Gabor-Granger assesses willingness to buy at set prices, adjusting based on feedback to find a single price that maximizes revenue for a product

Differences in Output:

✅Van Westendorp identifies a fair price range and the optimal price point

✅Gabor-Granger finds the best balance between price and demand

Application Examples:

1. Van Westendorp's Method:

✅Use: For setting a price range in a product category to align with consumer expectations and avoid mental price barriers

✅Avoid: Less effective for specific products with established market prices

2. Gabor-Granger Method:

✅Use: Ideal for pricing a new version of an existing product to maximize revenue

✅Avoid: Not suitable for new product categories where consumer value perception is unclear

Which Method To Choose?

Deciding between Van Westendorp and Gabor-Granger hinges on your goals. For understanding consumer price perceptions and ranges, Van Westendorp delivers. For pinpointing a revenue-maximizing price for a specific product, Gabor-Granger is key!

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📣Navigate your way to pricing mastery! Discover the strengths and challenges of leading methods and pick the best fit for your pricing goals with Syno Academy. Jump in:

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