How much more will a customer pay for a Samsung versus an LG television? Assigning price as an attribute and tying that to an attribute returns a model for a \$ per utility distribution. This is leveraged to compute the actual dollar amount relative to any attribute. When the analysis is done relative to brand, you get to put a price on your brand.

What is Price Elasticity?

Price elasticity relates to the aggregate demand for a product and the shape of the demand curve. It is a characteristic of a product in a market. The way we calculate is plotting the demand (Frequency Count / Total Response) at different levels of price.

• Under Feature Type, select the Feature Type as Brand or Cost/Price.

Now you can check the Brand Premium under Login » Surveys » Reports » Choice Modelling » Conjoint Analysis » Brand Premium

Select Price Elasticity against, Brand or Size.

Price Elasticity Calculation

Example: Brand Sony at price \$800 gives 57%

For Brand = Sony (Numeric Coding = 1) and price = \$800 (Numeric Coding = 1)

Hence in report downloaded we filter price and brand with 1 and take the unique count of response ID with selected = 1. Overall we have 8 counts with selected = 1 of which actually there are 4 unique response ID(35336485,35336531,35363723,35363730).

Total responses collected = 7

Price Elasticity = Count of Unique Response ID for a particular feature level with selected is 1/Total Response Collected

Hence Price Elasticity for sony with price = \$800 is 4/7 = 57%

This feature/tools described here are available with the following license(s) :

Enterprise Edition

Unlimited Surveys, Questions

No Long Term Commitment