Pricing is the most important element in marketing mix and the most sensitive one, Marketing manager should pay a great deal of considerations before taking such important decision (Winer & Dhar, 2011), this paper will discuss a case study of pricing decision for a new revolutionary product of a biotech company called: Medi-Cult.
1. Source of economic values for In Vitro Maturation (IVM) Vs. In Vitro Fertilization (IVF) IVF
Thinking of value-in-use method which has been explained by (Winer & Dhar, 2011, P264) is to estimating the customer value the put the benefits of IVM product in monetary terms, the following advantages of IVM of IVF has been identified (Winer, (N.d), P1):
1- Less time to mature an egg –from 30 days to 2.
2- Spared women the physical and psychological effects of the 30-day hormone stimulation since it is a hormone-free treatment.
2. Most appropriate method(s) to determine what a person/couple would be willing to pay for a cycle of IVM and what would be the best price of IVM cycle?
Medi-Cult have a lot of challenges to overcome: regulatory constraints for local market and other…show more content… The last challenge can be addressed by conducting a market research; Concept testing and price sensitivity test, in this research a concept shall be prepared to be presented to the respondents (concept contains the treatment name, vision, main benefits and values, a reason to belief and a picture of the treatment), the respondents will be asked to assess the product concept (likes/dislikes, uniqueness, willingness to buy … etc.) and then using a one of the price sensitivity meters such as Van Westendorp model customer opinion regarding the price will be taken, this research will help the marketing manager not only to identify the optimal pricing point but also it will reveal more values emotional for instance where product managers didn't think about it before (because it is