Conditional Pricing

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In advanced CBC questionnaires, researchers sometimes make the prices shown for product concepts depend on another attribute(s) such as brand.  For example, in a study involving wines, five price levels may have been included in the experimental design, but the five prices actually shown to respondents for each of the wines was different.  The premium wines, for example, may have had prices 3x that of the discount wines.  When conditional price is used, it is very convenient if the market simulator can support users directly typing in the price value to use in the simulator interface.  However, under part-worth utility estimation, the value $50 may refer to the highest price level (level 5) for the discount wine, but the lowest price (level 1) for the premium wine.  So, the market simulator must have a conditional pricing lookup table to know how to assign the correct utility values to price levels the user specifies in the product specification grid.

 

To specify a conditional pricing lookup table for the simulator to use, click the Pricing icon pricing_icon from the Home tab, Project Information ribbon group.  Then, click Add.

 

You are first asked to select which attribute is your Price attribute.  Then, you are asked to specify which attribute(s) were associated with price in the conditional relationship that was used to develop the questionnaire.

 

Based on your selections of the Price attribute and any attributes that conditionally affected price, a conditional pricing lookup table is shown, with a row for each combination of Price with the other attribute(s) levels.  For each row, specify the value that the user should type to refer to that Price x attribute(s) combination.

Page link: http://www.sawtoothsoftware.com/help/lighthouse-studio/manual/index.html?conditionalpricingwindow.html