Pricing Studies

Price Elasticity

We utilize three pricing methodologies:

  1. Multi-cell (1 cell per price point) monadic design is used to evaluate target market reaction to alternative price points for the same product or promotion.
  2. Van Westendorp – uses a single cell evaluation where guests are asked the most and least they would expect to pay for a specific product.
  3. Gabor-Granger Technique – uses a single cell design.  Respondents are asked to say if they would buy a specific menu item at a particular price.  If the respondents indicate “no” to ordering the menu item, they are shown a lower price and asked again if they would order.  If they initially indicate “yes” to ordering, respondents are shown higher prices until they say “no.”
Restaurant Insights
(803) 798-6373 1049 Key Road, Suite 58
Columbia, SC 29201