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Conditional Pricing


I have 8 attributes in the design. Each one of them is involved in the conditional pricing. As I understand, each relationship in Conditional Pricing can only have 4 attributes in maximum.

I cannot use Conditional display since each attribute needs to be included in the combination.

In such a case is design possibel?

asked Oct 31, 2013 by mal_saw2001 Bronze (875 points)

2 Answers

+1 vote

Have a look at this question and its answer I guess it's more or less what you're looking for

answered Oct 31, 2013 by phronexia Bronze (3,270 points)
Hi Thanks for the prompt response.
Yes that one do might do.
BUT, in my case I have to include all the 8 attributes together, so in one condition itself 8 attributes need to be fitted. But we have a limit of only 4 attributes at a time.

If you can update to v8 I guess the limit of 4 attributes has been removed
+1 vote
Please be careful with this...conditional pricing (if doing it with the look-up tables within CBC software) should probably be kept to just 2 or 3 factors involved in the conditional relationship, because it usually leads to the need to additionally estimate interaction effects, due to the nature of the look-up table.  And, the software is limited to just 2-way interaction effects.

It sounds to me that you are actually trying to ensure that the total price for a product is quite reasonable, based on all 8 attributes included in the concept (plus some small random shock to price, so you can disentangle the effect of price from the other attribute levels).   Our ACBC software handles this all quite nicely.  But, if you are trying to do this within a CBC survey, then you really should think about the difference between conditional pricing and "Summed Pricing".  These differences are described in the white paper entitled: Three Ways to Treat Price in Conjoint Analysis (https://www.sawtoothsoftware.com/downloadPDF.php?file=price3ways.pdf)

Please note that if you want to do Summed Pricing for CBC, it will require some customization tricks to field the survey and also some extra data processing and power tricks on the back end for utility estimation and market simulations.  So, proceed carefully if you want to go in this direction.

Again, ACBC automatically supports the notion of Summed Pricing, and ACBC often is an excellent solution for 8-attribute conjoint problems.
answered Oct 31, 2013 by Bryan Orme Platinum Sawtooth Software, Inc. (159,785 points)
Hi Bryan,

Thanks for this and it was helpful here explaining the client.

What we have decided now is not work on conditional pricing....

But adding up of all the prices of the selected levels in the Concept and showing it at the end of each task for each Concept.
Though this will not be part of the attirbute list but an additional information for the respondent to look at.

Is this possible in CBC? If not is there any way out? In case we need to do it at your end what would be the cost?
If you just want to add up the cost of a bunch of level-specific costs, then that is just a conditional display, rather than actual conditional pricing.  As you mention, it's not part of the design and nothing is estimated, as it's just a display change.  But, you'll still need to upgrade to version 8 to handle more than 4 attributes in any conditional relationship.  In previous versions, you would need to do something like export your design and recode it from 8 attributes down to 4 in order to field it, but then take the data and analyze it using the 8-attribute design.
Hi Bryan,

Thanks for the reply.
Could you share some details om how this recoding happens.
Please note that I am working on a capi study

Thanks again for your support