Testing Prices For A New Product with Swayable
Challenge
A fashion company was planning to launch a new line of hair accessories. However, they were not sure how to price the product. Too expensive, and the product might turn off would-be shoppers. Too cheap, and the product may not convey the brands' associations of luxury and quality.
Solution
Swayable tested prices from $45 and $75 for product consideration and purchase intent.
Results
Interestingly, the $75 price drove the strongest intent, signaling that audiences might see the higher price as a signal of luxury. In fact, audiences even had a negative reaction to the prices below $55!
The client was also able to determine which audiences to target. Younger audiences (under 35s) showed significantly higher interest than their older counterparts:
Insights
Companies can use Swayable to test out different prices before launching widely.