Predict the optimal price for maximum profit
Consumers' willingness to pay is often an automatic and unconscious process. They decide quickly if a product or service is too expensive or within a reasonable price.
When the brain perceives a product or service, it automatically estimates its corresponding value. These automatic estimations determine behaviour - to purchase or not purchase the product or service.
NeuroPricing™ estimates the optimal price for your product or service using EEG. It ensures that the listed price leads to maximum revenue and profit.
Why use NeuroPricing™?
NeuroPricing™ estimates the optimal price for maximizing profit for both new and existing products or services. NeuroPricing™ answers questions such as:
- What's the effect of a price increase on sales and market share?
- What's the best price for your product or service specified up until number of cents?
- What's the optimal price compared to those from your competitors?
How's it estimated?
The optimal price can only be estimated directly from the consumer's brain because it's an automatic and often unconscious process.
It wouldn't be effective to ask people on their opinions of a product's or service's price, because the question often leads to an emphasis on cost. This will influence price perception and most prices will be considered to be too high.
NeuroPricing™ uses EEG to implement an 'event-triggered' analysis: different product-price combinations are presented to examine which brain areas are activated. The respondents have to react under time pressure, which reduces thinking about the price.
The expected revenue and profit are estimated at various price points, doing so will show you the optimal price, as the optimal price is not necessarily the highest one.
At Neurensics, we know exactly which brain regions reflects the optimal price, also known as the 'feel-good price'. This is the sweet spot in which your target group is prepared to pay the requested price. We were able to determine the exact brain regions of this optimal price by cross-validating eight years of EEG research with fMRI scans.
What's in it for you?
Within 5 working days you'll receive:
✓ A clear report with all price points and the corresponding revenue and profit forecast
✓ Advice on the choice for an optimal price
Check out the PepsiCo Lays case
How NeuroPricing™ increased Lays' profits
PepsiCo wanted to know the effects of a price increase of 0.25 Turkish Lira on Lays chips in Turkey. The possible effects were studied using questionnaires and NeuroPricing™. Check out the striking contrast in results produced by both methods and how NeuroPricing™ prediction more closely resembled the actual sales data.
"We believe future pricing questions should be answered using NeuroPricing® because its results are significantly more accurate than those from alternative research methods."Vildan Ekmen, Revenue Strategy Manager PepsiCo Frito-Lay, Turkije
Get in touch
Vladimir Den Baars
Do you want to know more about NeuroPricing™?
Andries van der Leij
Head of Research & Development
Do you want to know more about our techniques?
Start a project
Want to know what NeuroPricing™ can do for you? Don't hesitate and contact Vladimir.
Vladimir Den Baars
Do you have a question about EEG or about other research techniques? Don't hesitate and contact Andries.