PRICING FOR PREMIUM CONSUMER ELECTRONICS
One of the largest global electronics manufacturers needed to decide which of several possible brands they should use to launch an innovative high-end consumer electronics device, and at what price. To do this they needed to identify which motivational factors drive purchase intent for premium consumer electronics, and how these differ from mass market consumer electronics.
Which brand positioning alights most closely with the the core product features? Which other factors would ultimately allow them to command the highest price?
We created a tool to compare key design features and then built prediction markets in three of the world’s largest consumer electronics markets, North America, Europe and China. High-end consumer electronics buyers and enthusiasts were presented with different brand options before predicting the expected utility, relevance and overall liking of the the products. As well as delivering category and competitor sales predictions, they also predicted specific sales figures for the different brands at a range of price points in each market.
The client was able to determine which brand would yield the highest premium in each region, as well as which specific product features were most compelling for their communications. We identified that while the high-end market was set for continued growth, their key competitor was losing market share. When combined with our clear price elasticity measures, this gave the client confidence to optimise their pricing strategies, ensuring a premium positioning as well as competitive price point.