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?
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%
Download Export Displayed Concepts Report from the Download Options.
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 is available with the following license :