MKTG-UB 1 Study Guide - Midterm Guide: Joe Dimaggio, Conjoint Analysis, Outfielder
Document Summary
5 different survey-based methods that can be used to measure value. Gabor granger model: customers are asked to complete a survey where they are asked to say if they would buy a product at a particular price. The price is changed and respondents again say if they would buy or not. From the results we can work out what the optimum price is for each individual. -- we can find demand & price elasticity. Van westendorp price sensitivity monitor: respondents are asked four questions to determine what prices are too cheap, where a price is a bargain, when a price is expensive and where a price is too expensive. By plotting the cumulative curves for each of the four prices, the crossing points are deemed to be optimum points. Brand-price tradeoff: customers evaluate a range of products and prices are adjusted until customers stop purchasing.
