Payer interviews wouldn’t give the quantitative insights our client needed.
Our client had already run qualitative research with payers, so they knew what was important to payers. But they wanted to know exactly how important different product features were in driving price potential. They understood that talking to a handful of payers in each country could never provide valid and statistically reliable price estimates.
We combined two powerful pricing techniques to give our client what they needed.
Often, pricing questions are some variant of: “Here is Product X. How much would you pay for it?” This type of question has been proven over and over to deliver biased results. So, we used a pricing technique called probabilistic van Westerndorp. This technique has been proven to deliver unbiased price estimates.
However, there is a drawback with probabilistic van Westendorp. It involves asking payers to consider just one product profile. Our client did not know exactly what product profile would emerge from its pivotal clinical trial. So, we also conducted a Pharma-Specific Conjoint™ in our payer questionnaire.
Conjoint is a survey technique that allows us to model how attractive any product profile is relative to any other product profile. So, by joining together a conjoint model with the result from our pricing question, we were able to provide our client with a “simulator”. The simulator allowed our client to change their product profile assumptions and see how their achievable price changed. (It also showed them the impact that each product attribute had on price.)
Result
A simulator that provided our client with accuracy, insight, and longevity.
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