Case Study #16 : Pricing Research - Musical Instrument
Actual Studies, Real Results – Using Marketing Research to Grow Sales and Profits
Product Category
Consumer - Musical Product
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Research Topic
Understand price elasticity of high end musical product
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Research Need
Lack of profitability mandated that a musical product manufacturer either reduce their price to grow sales volume or raise their price to improve margin.
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Research Process
A three-cell mail survey was conducted showing consumers an array of product choices, key benefits, and prices. In addition to the competitors' products, the client's brand was shown at three different prices, depending on the assigned cell.
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Results
Based on the research, the client was able to take a price increase. As an added bonus, the other high-end competitors followed with price increases, resulting in margin improvement with only a small decrease in sales volume.
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Links to Related Case Studies
Pricing Research - (More Case Studies - to be written)
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Consumer - Mail Survey Research