Research Methods

Price-Group Estimation Approach for Price Attribute in Choice Models Using Alternative Specific Design (ASD)

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About this presentation

To capture consumer’s response to psychological price points, ideally, every Brand-SKU X price point should be sufficiently exposed and estimated as part-worth (non-linear) for every respondent. Many a times, this is not feasible. So, we explored creating ASD price-groups such that brand-SKUs with similar tested price-levels and similar response to these price changes(after studying count analysis), fall in same price-group. We then estimate utilities for price-groups. This method restructures the same information that is already captured, without increasing sample size and performs well at estimating psychological price points.

Surbhi Minocha
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