Survey
The core of an IPR pricing survey is a mock shopping experience. Potential customers see actual product options displayed with as much realistic information as exists in the real world. Customers then "purchase" the product quantities that are most attractive to them. These potential customers see a variety of product prices. By examining purchase behavior under a variety of price conditions, IPR is able to estimate demand curves for the products of interest.IPR's approach to pricing research is not a "discrete choice" task, "conjoint" method, or multinomial logit exercise. Our data collection and analysis methods are very different and:
- Allow potential customers to purchase multiple product offerings at the same time – something customers often do in the real world.
- Respect the fact that real-world customers often purchase products in quantity rather than in a discrete (“pick one”) activity.
- Allow customers to enter the market, postpone purchase, or exit the market if they so choose as a result of the price.
- Measures demand over a much wider range of prices than is typically seen in discrete-choice projects.
- Provides explicit estimates of a specific product's cross-price effects. (A cross-price effect is the demand exerted on one product as a result of price changes in another.)
- Measures only realistic price combinations and scenarios. A company's "premium" product offerings, for example, are not priced at odds with "value priced" products. We respect the natural price order that exists in real-world product portfolios.