Pricing Strategy

Challenge: To deconstruct the consumer decision-making process, understand price sensitivities and willingness to pay for different features enabling the brand to reverse the market erosion.
What we did: idstats undertook an adaptive choice-based conjoint using computer-aided personal interviews. We defined 10 features with 3-5 levels within each ( not considering brand). We defined consumer prioritization of different features, map price sensitivity and identified the price that the consumer was willing to pay for each feature level. Optimization schedules were run for revenue and profits. A simulator was created to understand the impact of different feature and price combinations on the preference share of different product configurations.
Results: The findings were used to define ideal product configurations in the < 7,500- THB 12,000 THB range. Recommendations included a configuration in the 12,001-14,000 THB range. And a retail and assortment strategy for Bangkok versus upcountry markets based on the demonstrated consumer choice patterns.