Conjoint Analysis – Brand Premium

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.

How to setup Brand Premium?

  • Add the conjoint question.
  • Under Feature Type, select the Feature Type as Brand or Cost/Price.
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Now you can check the Brand Premium under Login » Surveys » Reports » Choice Modelling » Conjoint Analysis » Brand Premium

Select Price Elasticity against, Brand or Size.

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Price Elasticity Calculation

Example: Brand Sony at price $800 gives 60%

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Download Export Displayed Concepts Report from the Download Options.

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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 (remove duplicate response ID).

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This gives us Count of Unique Response ID for a particular feature level (Sony and $800) = 12

Next we remove all the filters and take the Unique count of Response ID. This gives us Total Count of Unique Response ID = 20.

To calculate Price Elasticity use following formula:

Price Elasticity = Count of Unique Response ID for a particular feature level / Total Count of Unique Response ID

Hence Price Elasticity for Brand Sony and Price $800 = 12/20 = 60%

License & Access Options

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

Enterprise Edition

Unlimited Surveys, Questions

Advanced Toolset and Features

No Long Term Commitment

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