Price Pricing decisions involve pricing new products, establishing price levels in test marketing, and modifying prices for existing products. Marketing research provides answer to question such as the following:
1.How large is the demand potential within the target market at various price levels?
What are the sales forecasts at various price levels?
2. How sensitive is demand to changes in price levels?
3. Are there identifiable segments that have different price sensitivities?
4. Are there opportunities to offer different price line for different target markets?