From the course: Market Research: Quantitative

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Understanding willingness to pay with Gabor Granger surveys

Understanding willingness to pay with Gabor Granger surveys

From the course: Market Research: Quantitative

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Understanding willingness to pay with Gabor Granger surveys

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- [Instructor] If you're fine-tuning your pricing, there's a more precise method than an open-ended Van Westendorp study. While Van Westendorp helps you understand the broad price range customers are comfortable with, a method called Gabor-Granger helps you refine pricing by pinpointing exact price points for an existing product or service. The Gabor-Granger method works by showing a product or a service to a participant, and then asking the participant if they would purchase the product at a specific price point. If they say yes, they're shown a higher price, and if they say no, they're shown a lower price. This continues until the highest price a consumer is willing to pay is found. By analyzing the results, you can see how demand shifts as price changes, giving you a precise insight into the optimal price for maximizing both sales volume and profitability. In a recent study, we asked participants about what they'd pay for a monthly subscription for a health app. We tested prices…

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