The need for the integration of market potential and pricing micro-models

Date of publication: June 15, 1988

Abstract:

This paper has attempted to demonstrate the benefits of integrating two quite distinct modelling processes, each based on a micro-modelling philosophy. In particular, it has shown how early quasi test-market volume predictions (such as provided by a Microtest type analysis) can be modelled at a variety of prices in addition to the core price contained within the concept proposition mix, and how valuable this can be to identify optimal pricing points. At the same time, the value of MicroTest type trial and volume data can make traditional Brand/Price Trade-Off modelling considerably more sensitive.

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