Posted by Megan Moyer
When you are deciding on a price point for your product you have to consider a number of factors. The perceived value of your product could be one of the most important ones; however, that insight isn’t always clear-cut and easily available.
Value is a very personal thing. What you value and what I value can be totally opposite of each other. When it comes to your product, once you’ve accounted for costs, fees, and margins, you still have to understand how your target market measures the value of it before you can recommend a final retail price.
The perception of value is also very specific. We have different formulas, if you will, for different products and services. While I may shop heavily on price for grocery items that I know are the same quality no matter which outlet I purchase them from, price is my most flexible criteria for a HBW item that will clear up an annoying problem.
How do you find out how your target customers measure value for products like yours? Market research would be your best bet. Supplementing that with some less formal research done via your social media outlets could provide excellent insight as well. Using your Facebook page, Twitter, or your own website to poll your followers about their definition of value for products in your category can provide useful information. It may not be as scientific as formal research, but the opportunity to have an open, ongoing dialogue with the fans of your brand is priceless.
Have you used social media to conduct research about something specific? How well did it work and for what type of research do you think it is best suited?