🔥 Just Released: 250+ AI Marketing Prompts
use this prompt when:
- You’re establishing pricing for a new product or service launch
- You need to evaluate if your current pricing strategy is leaving money on the table
- You’re considering a price increase but aren’t sure how customers will respond
- You want to understand different price thresholds across customer segments
- You need data-driven insights to counter internal pricing debates based on gut feelings
The prompt
Conduct a price sensitivity analysis for <business name>‘s <product/service offering> among our target audience of <target audience>. Apply methodologies such as Van Westendorp’s Price Sensitivity Meter or Gabor-Granger approach to determine optimal price points, thresholds where perceived quality or value changes significantly, and price elasticity across different customer segments. Recommend pricing strategies that maximize revenue and market share based on these insights, specifically addressing the pricing challenge of <pricing challenge>.
How to customize
Variables
Description
Variables
business nameDescription
Enter your brand or company name that offers the product or service being analyzed.Variables
product/service offeringDescription
Specify the exact product, product line, or service you need pricing insights for.Variables
target audienceDescription
Define your core customer segments, including relevant demographics, psychographics, or behavioral characteristics.Variables
pricing challengeDescription
Describe your specific pricing dilemma, such as premium vs. volume strategy, subscription model optimization, or competitive pricing pressures.
Example Output
Price Sensitivity Analysis: GLOW Skincare’s Vitamin C Serum
Methodology Applied: We conducted a Van Westendorp Price Sensitivity Analysis supplemented with Gabor-Granger approach among 500 target consumers (women 25-45 with disposable income who regularly purchase premium skincare).
Optimal Price Point Analysis: The analysis reveals an optimal price point of $68 for GLOW’s Vitamin C Serum. This represents the intersection of “too expensive” and “too cheap” thresholds where consumer sentiment balances between value perception and quality expectations.
Price Sensitivity Thresholds:
- Below $42: Product perceived as potentially ineffective or containing low-quality ingredients
- $42-$58: Acceptable but not premium positioning
- $58-$78: Optimal price range where perceived value aligns with premium positioning
- $79-$95: Upper premium threshold where purchase likelihood drops by 18% per $5 increase
- Above $95: Sharp decline in purchase intent (only 12% of target customers willing to purchase)
Elasticity Analysis By Segment:
- Skincare Enthusiasts (38% of audience): Least price-sensitive, willing to pay up to $85 before significant drop-off
- Results-Focused Pragmatists (42% of audience): Most price-sensitive, optimal price range $58-$72
- Occasional Premium Purchasers (20% of audience): Highly elastic, purchase intent drops 25% with each $8 increase above $65
Strategic Recommendations:
- Pricing Strategy: Position at $68 with the ability to offer targeted 15% promotions ($58) for acquisition campaigns
- Segmentation Approach: Create tiered packaging options:
- Standard 1oz bottle at $68 (core offering)
- Value-size 1.5oz bottle at $92 (targeting Skincare Enthusiasts)
- Trial-size 0.5oz bottle at $42 (converting Occasional Premium Purchasers)
- Competitive Positioning: The $68 price point positions GLOW above mass-market offerings ($35-55) but below ultra-premium brands ($90-120), creating a “masstige” position that addresses your challenge of premium positioning without alienating value-conscious consumers
- Value Communication Strategy: Emphasize the product’s 20% higher concentration of active ingredients at the $68 price point to reinforce value perception against competitors
Implementation Timeline:
- Week 1-2: Update pricing across channels and adjust positioning messaging
- Week 3-4: Roll out segment-specific offers
- Week 8: Conduct follow-up analysis on initial price response
- Week 12: Fine-tune based on segment-specific purchase data
Pro tips
- Combine survey-based sensitivity analysis with actual sales data from limited market tests for the most accurate results.
- When testing price sensitivities, always provide context about product benefits and competitive alternatives to mimic real-world purchase decisions.
- Segment your analysis by customer lifetime value, not just demographics, to prioritize pricing strategies that protect your most valuable customer relationships.
- Consider psychological pricing thresholds ($49.99 vs $50) in your final implementation, even if they weren’t specifically tested in your analysis.
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