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In this course, students will focus on leveraging Consumer Choice Research to better determine price for a product or service. The overarching-theme of this course is: Quantitative Research as a tool to determine the optimal price--a number--to place on a product or service. Quantitative pricing research, based on statistical and econometric models, is the only way to get that number.
This course focuses on three choice methodologies — conjoint, discrete choice, and MaxDiff — representing the state-of-the-art approaches to choice analysis. Choice analysis is important because consumers choose your product over a competitor’s based on its features or attributes with price being one of these attributes that operates in conjunction with the others. Their choice impacts your sales and ultimately your key business metrics, including revenue.
At the end of the course, participants will understand:
- The pros and cons of the three choice methodologies and their use in quantitative pricing research.
- The theoretical/conceptual background of each methodology.
- How to create design matrices of pricing options (i.e., treatments).
- How to present elements of a design matrix (i.e., choices) to consumers.
- How to estimate/analyze model results for pricing
– The importance and estimation of price elasticities
– The concept of Willingness-to-pay (WTP)
– The use of profilers or simulators.
Attendees will learn:
The importance of choice modeling (whether for consumers or businesses) for optimal pricing
The specification, design, estimation, and analysis of three main choice modeling methodologies: conjoint, discrete choice, and MaxDiff.
How the three methodologies can be used to understand pricing and price strategy development