{"id":18688,"date":"2021-10-04T21:00:07","date_gmt":"2021-10-04T14:00:07","guid":{"rendered":"https:\/\/www.cimigo.com\/?post_type=solution&p=18688"},"modified":"2026-08-13T11:22:59","modified_gmt":"2026-08-13T04:22:59","slug":"price","status":"publish","type":"solution","link":"https:\/\/www.cimigo.com\/en\/solution\/price\/","title":{"rendered":"Price"},"content":{"rendered":"\r\n

Cimigo can help you make better pricing decisions. The appropriate pricing approach and research solution will depend on the complexity of the decision.<\/p>\r\n\r\n\r\n\r\n

\"Cimigo<\/figure>\r\n\r\n\r\n\r\n

Pricing decisions are important for determining:<\/strong><\/p>\r\n\r\n\r\n\r\n

\"Important<\/figure>\r\n\r\n\r\n\r\n

Setting the right price for your brand\u2019s perceived value<\/h3>\r\n\r\n\r\n\r\n

How do you know whether you are setting the right price for your product? The chart below is a favourite among CEOs and CFOs. It helps determine whether a brand is priced below or above the value consumers perceive it to offer.<\/p>\r\n\r\n\r\n\r\n

Few brands are overpriced, but many are priced below their potential. A brand may be able to charge more when its products offer values and features that competitors cannot match. Many businesses do not fully recognise the brand equity they have built. Consequently, they miss potential revenue because their products are underpriced.<\/p>\r\n\r\n\r\n\r\n

Cimigo can help you make better decisions by identifying whether your brand is priced above or below its perceived value. Cimigo\u2019s brand value model compares brands within the same product category, identifies the factors that drive purchase behaviour and measures their relationship with current retail prices.<\/p>\r\n

\"Cimigo<\/p>\r\n\r\n\r\n\r\n\r\n\r\n

Some brands, such as brand 2 on the map, are appropriately priced for the value they provide to consumers. They therefore sit close to the value equivalence line.<\/p>\r\n\r\n\r\n\r\n

Brand 1 sits in the advantage zone, to the right of the brand value equivalence line. This brand provides more value than consumers are paying for and therefore achieves considerable market share and sales volume. The brand owner should undertake further pricing research to understand the effect of a higher price on market share, volume and margin, and to identify the optimal price point. In this example, further research led to an increase in the price of brand 1. Its volume share fell slightly, but the manufacturer earned more profit.<\/p>\r\n\r\n\r\n\r\n

Brands 3, 4, 5, 6 and 7 sit in the disadvantage zone, to the left of the brand value equivalence line. These brands provide consumers with less value than their prices suggest. They need to identify the factors that influence consumer choice and strengthen their brand value and brand equity. During this process, they should also review their pricing tactics. Several brands in this example have relied on promotions to clear inventory.<\/p>\r\n\r\n\r\n\r\n

Simple price sensitivity assessment<\/h3>\r\n\r\n\r\n\r\n

Cimigo applies a simple price sensitivity meter model to determine the acceptable price range and the optimal price within it. Consumers are asked at which price they consider the brand being tested to be:<\/p>\r\n\r\n\r\n\r\n