In-Market Price Tests
Description of How it Works
Measures of Predictive Validity
- The research design for in-market tests is complex. All aspects of the design and product category must be well thought out.
- One of the most significant limitations of achieving success using an in-market price experiment is securing the cooperation with the trade channel or final retailer. Buy-in and a commitment of support for the inmarket test must be secured from the retailer early in the planning process.
- Normally incentives and access to the research findings can achieve cooperation.
The methodology produces very reliable and effective results if executed properly. The results are understandable and easily translated into executable action by the product manufacturer’s team.
1. Dolan, R.J. & H. Simon. (1996). Power Pricing: How Managing Price Transforms the Bottom Line. The Free Press: Simon & Schuster. New York.
2. Underhill, P. (1999). Why We Buy: The Science of Shopping. The Free Press: Simon & Schuster. New York.
3. Mohn, N.C., Coca-Cola Research Institute – Marketing Division. (1998). Pricing Research for Decision Making. Marketing Research Vol 7(1) pp. 11.