In all the previous study, we were including Brand x Price interaction for generating utilities. Here we have assumed that price is linear. Recently in some studies the sensitivity of the model is coming out to be very low, say, about 0.2-0.3. On introducing SKU x Price interaction in utility generation the model becomes highly sensitive, the elasticity of level had increased to 0.9-1.0.
We have also examined the impact of introducing SKU x Price interaction in the other studies as well. Elasticity numbers had gone up significantly for the studies with higher number of SKU levels. Now we need to understand whether the rise in elasticity is significant not.
Thanks in advance for the help.