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- Qualitative research to ascertain that the product and feature set in question is being evaluated in the proper set of prices ranges by the right customer population.
- Quantitative research to provide formal analysis of the information gleaned in step one, e.g. how much value do potential customers attach to specific features, and how should those values be reflected in pricing? In other words, how much are intangibles such as “name brand” worth to customers, or what value do customers attach to incremental changes in device performance, e.g. +/- 1% accuracy in measurement versus +/- 5%?
- Creation of a “numbers story” to compare likely outcomes from introducing the product at one price versus another. This step takes into account questions such as how introduction of the new product might impact sales and revenue from existing products: it is one thing to maximize revenue from any given product, but quite another to price a product in such a way that profit is optimized across the entire product line to maximize benefit for the producer.