Pricing a product is one of the most important decisions an organization can make. Marketing research has developed several different approaches to price optimization. They include direct methods such as estimation of willingness to pay, indirect methods such as Gabor-Granger and van Westendorp techniques, and product/price mix methods such as various discrete choice models. All of them are widely used in practical marketing research for evaluation of optimal prices for different products and product innovations. This work describes and compares several main of these approaches.
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