Analyze Price Sensitivity & Willingness to Pay on Etsy | Product Pricing Guide

Enhanced Prompt: Comprehensive Etsy Product Pricing Analysis Strategy

Objective: The goal is to conduct a detailed analysis of your target market's price sensitivity and willingness to pay for products similar to yours on Etsy. This analysis will inform data-driven pricing strategies to optimize profit margins and enhance market penetration. The analysis should include market segmentation, competitor pricing analysis, customer willingness-to-pay (WTP) modeling, and pricing strategy recommendations.

Scope:

1. Market Segmentation:

   • Identify and analyze price sensitivity across different demographic and psychographic segments of your target market.
   • Conduct a WTP analysis for each segment to determine the maximum price they are willing to pay.

2. Competitor Analysis:

   • Collect pricing data for similar products from competitors on Etsy.
   • Analyze pricing trends, value propositions, and customer feedback to benchmark your pricing strategy.

3. Data Collection:

   • Gather sales data, customer reviews, and transactional data from Etsy.
   • Collect customer demographics, purchase history, and feedback to understand price sensitivity.

4. Analysis:

   • Use statistical methods to calculate price elasticity and WTP score for your products.
   • Perform A/B testing to validate pricing strategies and observe customer response.

5. Recommendations:

   • Provide actionable pricing strategies, including base pricing, premium pricing, and discount pricing models.
   • Offer insights into product positioning, bundling opportunities, and upselling strategies.

Deliverables:

• A detailed report including WTP score, price elasticity analysis, and segmentation analysis.
• A pricing strategy framework with actionable recommendations.
• A dashboard fo