In the world of research, there's often a fine line between understanding user needs and determining the right pricing strategies. While user research, market research, and marketing research all play vital roles in customer engagement, it's essential to recognize that pricing questions are primarily a domain of market research. In this blog post, we'll explore the distinctions between these disciplines, where pricing research fits in, and how I have gathered feedback (albeit it reluctantly) about price sensitivity as a user researcher.

Understanding User Research, Market Research, and Marketing Research:

User Research revolves around gaining insights into the needs, behaviors, and experiences of actual users of products or services. It employs methods such as interviews, surveys, usability testing, and observation to inform the design and enhancement of user experiences.
Market Research focuses on comprehending the broader market landscape, including potential customers, competitors, trends, and market demand. It aids in identifying market opportunities and making informed decisions about market entry, product positioning, and marketing strategies.
Marketing Research assesses the effectiveness of marketing strategies and tactics, examining customer responses, buying behavior, and brand perception to optimize marketing activities.

I know the above may appear as sharp as a razor, but let me tell you, those lines blurrrrrrrrr like a Picasso painting at a funhouse!

Where Pricing Research Fits In:

Pricing research is a specialized subset of market research, specifically exploring the dynamics of product pricing. It examines customer price sensitivity, competitor pricing, and willingness to pay to help organizations determine optimal pricing strategies.

I try HARD to avoid pricing research and I suggest other user researchers do too. It’s complicated. That said here are some approaches I have applied successfully when I am pressured to explore it.

Approaches to Gathering Pricing Input in User Research:

A. Conduct Evaluative Research:

Conduct evaluative research ensuring that clear pricing information is displayed. Explore participants' perception of value, budget constraints, and their notion of a fair price for the product or service. Use open-ended questions to gauge willingness to pay and understand how pricing influences their purchase decisions. It's often helpful to probe on who they think the product is targeted towards and if they fit into this audience, or not, and why.

Never ask "Would you buy this product?" It assumes a positive response and likely does not allow for honest feedback. It is also too forward and may come across as pushy or worse, sales-y. In addition, asking participants about future behavior often leads to unreliable and inaccurate responses. People's intentions and predictions about their future actions frequently do not align with actual behavior due to various factors such as changing circumstances, external influences, and personal biases.

B. Utilize the Van Westendorp Pricing Model:

This model includes four questions to assess price sensitivity and determine optimal pricing strategies. It creates a box around the optimal pricing from which you can begin to ascertain a potential ballpark.

And, I admit, it's super fun

At what price would this product be so expensive that you would not consider buying it?
At what price would it be just getting expensive but you would still consider buying?
At what price would it be a bargain and such a great buy for the money?
At what price would it be so cheap that you would actually be worried about the quality of the product?

C. Analyze Competitor Pricing:

Gather information about whether your target audience is willing to pay, or does pay, for comparable products and services. Evaluate their satisfaction levels with those offerings, what features are important to them and why, and the amount they are willing or currently spend.
Analyze the pricing strategies competitors employ in your market. Understand how your pricing aligns with theirs and how it influences the perceptions of your target. This is also a terrific means to identify opportunities for differentiation based on pricing.

Importantly, recognize that experiencing a problem doesn't necessarily guarantee a willingness to pay any amount, including 50 cents, to resolve it. Make sure to investigate the severity of the pain point your product addresses.

In sum, by understanding the distinct roles of user research, market research, and marketing research, you can gather valuable pricing intel to make informed decisions and optimize pricing strategies for success. BUT, keep in mind that pricing questions do fall under the purview of market research, and incorporating them into user research requires very, very careful consideration.

Guest Blog

Last week I mentioned my new found love of being a guest blogger and sharing these articles here, periodically. My second article was titled "Enhancing unmoderated studies: How to uncover deeper insights with creative approaches." It covers valuable strategies and tactics to enhance the effectiveness of unmoderated studies, from gathering pre-study inputs to conducting post-study interviews, resulting in richer insights and more meaningful research outcomes. Enjoy the article here.

Replay Available Now

Andy Warr led a 90-minute Expert Series event titled "Checkout My UXR Case Studies & Learn Why I Approach Them This Way." He showed some of his actual case studies, fielded dozens of questions, and added 30 minutes of additional content to the recording. It's fantastic and actionable for both individual contributors and managers. Learn more here. The replay is available now.

Upcoming Ask Like A Pro Project Sponsor

We're thrilled to announce our next cohort's project sponsor is Blurb! Blurb is a fantastic platform to create, print, and sell professional quality books. I've used the platform for years, created and published multiple books, and LOVE IT. We'll be exploring interesting generative and evaluative questions for them in fall cohort. Welcome Blurb!

The next Ask Like A Pro cohort begins in September! This user research workshop series is intended for people who want to upskill in their current and future qualitative research roles. Have specific questions? Schedule an "Is Ask Like A Pro Right for Me?" call with Michele.

Upcoming Events

Expert Series Event: Conducting UX Research at Non-Profit Code for America. August 10 from 12:30-2pm PT. Jenn Thom, Director of Qualitative Research at Code for America, will share her own experiences making the transition from industry, provide insight on what hiring managers look for in UXR non-profit roles, and much more. Details and registration will be available on Eventbrite soon!
Is ALAP Right for Me? August 22 at 5pm PT. Details and registration will be available on Eventbrite soon!
Ladies That UX (Washington DC) “Ask Michele Anything” August 23. Details and registration will be available on Eventbrite soon! Note: this is a remote event. Thanks for all of the messages that Asked if I will actually be in DC physically!
Bitesize UX / Curiosity Tank Card Sort event. August 29 at 3pm PT. Details and registration will be available on Eventbrite soon!
IamJ Designs Co Podcast with Jaison Thomas. 9am PT September 6. Details coming soon!
Ladies that UX (Lisbon) podcast. Live first week in September.

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We try to alternate between a theme and UX/UXR jobs, events, classes, articles, and other happenings every few weeks. Thank you for all of the feedback. Feedback is a gift, and we continue to receive very actionable input on how to make Fuel Your Curiosity more meaningful to you.

What do you think? We're constantly iterating and would love to hear your input.

Stay curious,

- Michele and the Curiosity Tank team

PS: Don't forget to check out the "Expert Training Series". You know you're curious!

Pricing Questions: How to? Whose Endeavor?