The elasticity question is a matrix question that has points from a price range that you want to test. The items on the X-axis are the various price points and the items on the Y-axis are the selected brands sent from the previous funnel question. In general, it is advisable that the price ranges are increasing or decreasing consistently. Example:
All things being equal, how much would you pay for a value combo of a burger, fries, and a medium drink?
Burger King
Wendy's
Description of a new product here
We have some important observations here:
Extraction : The brands that are carried over (Burger King, Wendy's) are the ones the respondent selected in the funnel question.
Permanent pinning: You can add a new brand/product to measure what adding a new product can do to the mix. This option can be permanently pinned so that you are always prompted regarding the options users choose. In our example above, “New Product Description” is the new pinned option.
No-choice option : An N/A option should be presented that allows users to say that none of the price points are acceptable. This is extremely important, as it follows the cardinal rule of all self-administered surveys : they romania phone number be mutually exclusive and exhaustive. The N/A option satisfies the exhaustive part of the rule.
Price band : The price band is from $2.99 to $4.99 in this example. Your actual values will likely be different depending on your measurement parameters. In general, it is advisable to keep the range consistent (in this case a standard $.50 increase.)
Learn how to define the sales price of a product .
How to measure purchase intention with surveys
These are the steps you must follow to measure the purchasing intention of respondents:
Step 1: Create the funnel question. Use your survey software to add a multiple choice (checkbox) question.
Step 2: Create the “Extract Question” – Use the “Extract” function on the funnel question to extract to a matrix question.
Step 3: Edit the extraction question to add/update price points
Step 4: Edit the pull question to add a constant anchor (new product, etc.) if needed . Make sure not to delete the pulled options.
I share with you 3 strategies to raise the prices of your products appropriately.
Analytical measurement of price elasticity
Once you've administered your online survey, we can look at the type of analysis that can be performed. You may choose to add another question to the survey depending on what other things you want to measure. However, keep in mind that keeping your survey short and simple is your best bet for high response rates.
Because of our current setup, a relative frequency percentage can be calculated very easily for each of the price points for each brand.
For example, you can find what percentage of users who choose Burger King as one of their funnel questions chose $2.99 as the price point for the value combo.