Potential price points are tested monadically along with their respective products among a target group of consumers.
This method of pricing research is only feasible when the marketer has a good sense of what price range the market can bear and is typically used to evaluate relatively small variations in price. Product elements cannot change from price point to price point.
The objective of this model is to ascertain the range of acceptable prices for a product or service.
Consumer price expectations and tolerances are measured by asking for a set of price perceptions. The price at which the product or service is…