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How to deal with prohibitions in case (3)?

Thanks for your reply. If I am in situation (3) as you described above, I actually do not have any prohibitions. How should I formulate the prohibitions then?
asked Nov 22, 2016 by Marjolein Harmsen - van Hout

1 Answer

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Marjolein,

I think if you have prohibitions about which price points can appear with which brands, then you have a situation more akin to the second case I described.  The different design methodologies I described can all accommodate this situation and software packages can handle it pretty easily, though some do it a little differently than others.

But if you don't have prohibitions and you are in the third case I describe, then when you run the analysis you just create a different design column for each brand's prices.  So if you have brands A, B and C you have a column in your design for brand A's price (which is coded as missing when the profile is brand B or C) and you have  a second column for brand B's price (coded as missing when the profile is of brand A or C) and a third column for brand C's price, again coded as missing when the profile is for brand A or B.  The exact way of coding the prices to be missing is software-specific and can depend as well on whether you treat price as a part-worth or a linear function.
answered Nov 22, 2016 by Keith Chrzan Gold Sawtooth Software, Inc. (48,525 points)
What to indicate if you don't have prohibitions?
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