Instruction: Design a study to assess price sensitivity for a luxury tech product targeting a niche market.
Context: This question tests the candidate's ability to devise methodologies for understanding consumer price sensitivity, particularly in markets where price may be less of a barrier to purchase.
Official answer available
Preview the opening of the answer, then unlock the full walkthrough.
First and foremost, I would propose conducting in-depth interviews and focus groups with current and potential customers within the niche market. This qualitative approach allows us to explore the psychological factors that influence their purchasing decisions, such as perceived value, brand loyalty, and the role of the product in signaling status or identity. During these sessions, we could employ projective techniques, such as asking participants to describe the person who would buy the product at various price points, to uncover deeper insights into their price-related perceptions and motivations.
Additionally, a Conjoint Analysis study would be instrumental in quantitatively assessing price sensitivity. By presenting...