How it works:

Gabor Granger is a method for determining a demand and revenue curve for a specific product or service. Respondents are shown different prices for a product or service and asked about their likelihood of using the product or service at each of the prices shown. This information can then be used to define the ideal price and price sensitivity.

Advantages:

The Gabor Granger Method is simple to apply and does not take much time and can therefore easily be built into studies that also look at aspects other than pricing.

Uses:

• Definition of optimal prices for new products or services
• Adjusting prices for re-launches

Further information:

To increase validity, this method of determining pricing is often used together with other methods (multi-method strategy).

Case studies on pricing research (Pricing – Price Optimization)

• Product and price optimization: Landline, Internet, mobile phone and additional services B2B > Further information
• Price optimization mobile telephony B2C > Further information

To find out more about the Gabor Granger Method please contact us.