“What Should My Price Be?”
A Choice-Based Conjoint (CBC) methodology is well-suited for studies where there are an uneven number of levels across the various attributes (features, quality, selection, service, availability, price) included in the design of the study.
The key characteristic of a Choice Based Conjoint analysis is that respondents make a simulated purchase choice from a set of alternative product profiles composed of multiple conjoined (joined together) elements (or levels of an attribute).
Price Elasticity Philosophy
Optimization Group’s research has shown that, in many cases, the “Best Price” is not necessarily the lowest price in the eyes of the customer. There are many factors influencing the perceived value equation; the Optimal Price balances elements of the value proposition over the perceived costs to arrive at a “Value Level” or expected value: