ABSTRACT
This chapter presents three methodologies that are often used despite the fact that other methods, especially discrete choice, are available. They are the van Westendorp Price Sensitivity Meter, Gabor–Granger pricing methodology, and A/B price testing. Each methodology has its own pricing scenario. A pricing consultant recommended the van Westendorp method for determining a range of prices for a business case analysis. The Gabor–Granger pricing methodology is an old method for determining a demand curve for a product. A/B price testing is a method used in an online environment to test different website landing pages, advertising and email messages, promotional offers, calls to action, as well as price points. Estimations and analyses for the three methodologies can be done with most statistical packages such as JMP, R, SAS, and Stata. A JMP add-in script was used for the van Westendorp analysis.
