The problem dealt with here arose from the quite practical question of what influence the selling price of a magazine has on sales . We wanted to see whether the economic principle that "raising the selling price always means danger of lessened sales", is absolutely valid in this case, too, or whether a price rise confining itself to definite limits may not affect sales figures . Price elasticity in the marketing psychology sense was up for discussion, i .e. willingness to buy depending on sales price, the general question simply being whether price is important in purchasing or whether it is just a secondary feature of the goods offered. Then followed the specific question of whether and to what extent a rise in price would be possible without lessening the sale of magazines.
Three detailed examples are given here for each of the subareas of product and price policy, distribution policy and advertising policy. In each case a tentative theory is postulated and evaluated in the light of the data available. Firstly, a split-run-test for measuring the brand-substitution effect of price changes is discussed. The second model refers to the estimation of the turnover of individual outlets. The final example introduces a learning type of advertising response function, which seems to be useful for auditing advertising performance on a continuous basis.
This article describes a marketing experiment which we believe to be the first of this type in Ireland. This controlled experiment was an attempt to test consumer reaction to price and display changes of a specific consumer product, a branded aerosol air freshener, within the limits imposed by time and the variations allowed by the co-operating grocery chain store.
In this paper they report some of their research findings as they apply to the initial pricing of new products. They have used two techniques of research to expose consumers' price willingness in a number of markets.