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Considering the significance of pricing strategy and its inter-relation with brand equity, it's imperative for brands to adopt intelligent analytics when they are pricing their products, says an Absolutdata report on mistakes to avoid when conducting conjoint analysis. The reports says, when using Conjoint analysis, a prediction-based analysis on market share of any product, companies should test prices that can be realistically changed and not a wide range of prices. Also, often, price is not the only variable to play with. One can increase price by bundling in another feature(s) , or increase the price/Kg by reducing the quantity at the same price. These options should be explored before taking the pricing decision.
The report says one should be careful when testing similar ranges for all products as no two brands are same and no two SKUs are same either. Thus, one should not limit oneself to testing same price range/number of levels for every product.
