New Product Development Research

New Product Development Research- two case studies in the software and business services sectors

Case Study 2: Optimum Pricing Strategy

 

Objectives

Redshift Research undertook a study to  establish an optimum pricing strategy for an existing document management solution aimed at UK accountancy practices. The client provides information, software tools and  solutions to people working in  the health, accounts and legal professions. Rather than to provide market intelligence on designing a new product, this research
was planned to help align the pricing position of an existing product. Secondary objectives included feedback on the product and the likelihood of using it in the future.

 

Research Programme 

A total of 100 telephone interviews with accountancy practices with 10 – 99 staff. The
Sample was skewed to practices with 10-49 employees, representing the primary focus on smaller practices. The research measured awareness of document management technology,
attractiveness of the benefits of the product, likelihood  of uptake and pricing perceptions.

 

 

Optimum Pricing Analysis

 

A key objective of the research was to establish the optimum pricing point of the product – e.g. the pricing levels which would result in higher take up and higher revenues. A questionning technique was used to establish the price points on a predetermined scale the product was regarded as expensive, inexpensive, too cheap and too expensive.

 

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