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Conditional Pricing Advice

Hi,

I am looking for advice on the best approach to setting up a conditional pricing study using CBC.

I have eight attributes representing features that could be included in a bundled offering. Each attribute/feature has two levels, one for 'included' and another for 'not included'. There is also an attribute for bundle price, which has nine levels of +/-40% price variations. I would like to be able measure the price sensitivity for each attribute/feature at the end of the study. The individual features/attributes all have a price attached, with the overall bundle price shown as the sum of the prices of that attributes that are included. I have set this up for all combinations using a conditional relationship table. Is this the best approach to take, given the outcome I want to achieve?

Also, using the present setup I have nine combinations where none of the features are included in the bundle and the conditional price displayed is £0. Is there anyway to prohibit these combinations from showing? I am aware that this can be done using the Advanced CBC module but I don't have a license for this at present. Could you advise a possible work around solution? Or it not possible to do so?

Many thanks in advance. Any advice would be much appreciated.
asked Aug 29, 2012 by anonymous

1 Answer

+1 vote
This looks like a study that quite possibly would work better as an ACBC (Adaptive CBC) rather than a CBC.  If there are prices attached to each feature, and if the buyer would see such prices in the real world, then the BYO section of ACBC is quite relevant.  And, the conditional pricing for all 9 features is handled quite nicely with the "summed pricing" functionality of ACBC.  

Prohibitions to find and erradicate a tiny minority of combinations (such as if all "null" levels appear for all your attributes) can be done by exporting the design to .csv (off the Design tab) and then manually searching for those in Excel and modifying those few offending concepts, then re-importing the design into SSI Web (also off the Design menu).
answered Aug 29, 2012 by Bryan Orme Platinum Sawtooth Software, Inc. (133,765 points)
Many thanks for your advice on dealing with the prohibitions. I will let you know how I get on with this.

I am not sure that ACBC would be completely appropriate, as buyers will only be able to purchase the bundles that they are offered in the real world. Buyers will not be aware of the prices of the individual elements, so there is no real life BYO exercise. The prices of the individual elements will not be disclosed in the exercise. The only price displayed in the exercise will be that of the conditional summed bundle price. Therefore, am I correct in thinking CBC is a better option for what I am trying to achieve in this case?

Thanks again, I appreciate your advice.
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