Pricing research

Pricing research is the craft of measuring what buyers will pay. The three classic methods each have their place. Gabor-Granger asks purchase intent at ascending price points, sketching a demand curve. Van Westendorp asks when a price feels too cheap, cheap, expensive and too expensive, yielding an acceptable range. Conjoint analysis has people choose between product profiles and derives what each attribute, including price, is worth; it is the heaviest but most valid method. The shared limitation: all three measure statements in a questionnaire, not real buying with real money.

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