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Sales and Pricing Studies MRA has extensive experience in sales and pricing studies, in fields as diverse as agricultural chemicals, banking, personal care products, and laser printer toner cartridges. Our background in these many industries gives us a unique perspective on the problems and potential seen in these studies. 
Price, perceived value received, and sales penetration are heavily intertwined in purchase decisions. Often,
however, the relationship is not as simple as we might initially believe. Given equivalent levels of "objective"
product quality, different companies may be able to price the product differently, achieve unique levels of
perceived quality, and have better or worse market penetration. Similarly, the lowest price does not always
equate to the highest sales penetration; brand or name equity - not to mention total dollar revenues - might
be diluted with an inexpensive price. The net result could be that customers believe that the product value
of lower price point product is less than the value of a medium or premium-priced product - even if the
products are objectively identical.
Sales and pricing studies must inevitably be designed, seen and interpreted within the context of a company's objectives for a product. If the goal is to gain market share in the hopes of garnering name recognition and brand equity, then sales penetration - almost regardless of price and total dollars generated from the product sales - becomes the key outcome variable. If the goal is to maximize revenue, then charging a price premium and accepting somewhat lower unit sales may be the best approach to take. Indeed, we have seen situations where both sales penetration and total dollar revenue were maximized by charging a modest - not exorbitant - price premium. Why? Because the name equity associated with the manufacturer was such that the lowest price point was deemed "too cheap" for such a prestigious manufacturer. Introducing the product at the lower price ran the risk of diluting their name equity. Unit sales increased at a medium price, and obviously generated significantly greater revenue. At the highest price point, unit sales plummeted. This example illustrates that the inter-relationship of price, value, and total sales is a complicated one that is difficult to research. Pricing and sales studies contain many issues that fundamentally interact with a respondent's self-interest. As a result, these studies require considerable attention to ensure proper execution. MRA's experience with analyzing data from sales and pricing studies ensures that your results will be accurate and actionable. We will provide you with the most accurate sales forecasts available in the industry because we know how to address the problems and find the solution that you need to make an effective business decision. In particular, we find that there are two key areas where respondent self-interest and other aspects of measurement error influence pricing and sales research:
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