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.
