Pricing Tutorial - Entering Your Data

Entering Your Pricing Data

Because the Pricing model requires a specific data format, users with their own data should to review the pre-formatted template to learn about the appropriate structure.

A Pricing model requires:

• Likelihood of Purchase Scale. In the Gabor-Granger model, respondents are asked to express their purchase likelihood on a multiple-item scale, ranging for instance from “1 = Will never buy” to “5 = Will definitely buy”. The Likelihood of Purchase Scale transforms these answers into actual probabilities ranging between 0% and 100%. Note that respondents are notoriously known to overstate their purchase probabilities, so that associated probabilities are rarely higher than 50%, even for the highest options on the scale. Although in practice, the associated probabilities are estimated based on past experience in similar product categories or via market research, Enginius will populate this table with commonly used values.
• Price Levels.  The different prices used are entered into this table, in increasing order (from the lowest tested price level to the highest one). 
• Respondent Data. This matrix contains the respondents’ answers. The first column contains respondents’ ID’s. All the other cells contain respondents’ answers. For instance, in the example above, the first respondent answered that he “5 = will definitely buy” the product at a price of $5, $10 or $15; “4 = will likely buy” at a price of $20, etc.

An example of the Enginius Pricing data format: