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| Brand-Price Trade-Off× | Gabor-Granger Pricing× | |
|---|---|---|
| Field | Marketing Research | Marketing Research |
| Family | Process / pipeline | Process / pipeline |
| Year of origin≠ | 1975 | 1966 |
| Originator≠ | British market-research practitioners (1970s); formalized within conjoint pricing (Bryan Orme) | André Gabor & Clive W. J. Granger |
| Type≠ | Sequential brand-at-price choice task for price elasticity and switching | Direct purchase-intent pricing survey yielding a demand curve |
| Seminal source≠ | Orme, B. K. (2020). Getting Started with Conjoint Analysis: Strategies for Product Design and Pricing Research (4th ed.). Madison, WI: Research Publishers LLC. ISBN: 9780972729772 | Gabor, A., & Granger, C. W. J. (1966). Price as an Indicator of Quality: Report on an Enquiry. Economica, 33(129), 43-70. DOI ↗ |
| Aliases | BPTO, Brand/Price Trade-Off, Brand-Price Trade-Off Analysis, Sequential Brand-Price Choice | Gabor-Granger, Gabor-Granger Technique, Direct Price-Response Method, Purchase-Intent Pricing |
| Related | 4 | 4 |
| Summary≠ | Brand-Price Trade-Off (BPTO) is a pricing-research technique that measures how consumers trade off brand preference against price by presenting competing brands at varying prices and asking, repeatedly, which one they would buy. In the classic procedure the respondent chooses a brand from a set shown at given prices, and then the chosen brand's price is raised in the next round, forcing successive choices until the respondent switches to a cheaper alternative or to none. The sequence of switch points reveals how much of a price premium each brand can command before customers defect, mapping brand loyalty and cross-brand switching. Developed by British market researchers in the 1970s and conceptually rooted in the price-perception work of Gabor and Granger, BPTO is in effect a constrained, sequential choice experiment focused on brand and price. Modern practice analyzes the resulting choices with a logit model under random utility theory, yielding brand utilities, price elasticities, and a simulator for share under different competitive price scenarios. It remains popular for fast-moving consumer goods where brand-versus-price is the dominant decision. | The Gabor-Granger method is a direct pricing-research technique that estimates a product's demand curve by asking respondents whether they would buy it at each of several price points. Developed by economists André Gabor and Clive Granger in the 1960s through surveys of how consumers perceive and react to prices, it asks a simple question, would you purchase at this price?, across a ladder of prices, usually presented in random order. Aggregating the share of people willing to buy at each price traces a stated demand curve, from which the analyst computes expected revenue at every price and identifies the price that maximizes it. Because it focuses on a single product rather than competitive trade-offs, Gabor-Granger is fast, intuitive, and well suited to setting or testing a price for an existing or clearly defined offering. It also yields a straightforward estimate of price elasticity. Its directness is both its appeal and its main weakness, since asking about price in isolation can prime respondents and overstate price sensitivity. |
| ScholarGateDataset ↗ |
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