If using our logit, latent class, or HB analysis procedures, click the Setting icon and then click Attribute Coding. Use the drop-down menu next to each attribute to select "Linear" for the coding of that attribute. Specify "Level Values" in the grid that displays to associate level values with price levels that are proportionate to the prices actually displayed for each attribute level. For example, if the prices shown to respondents were
$1.00
$2.50
$3.50
Then you should specify price Levels of 1, 2.5, and 3.5.
If using HB estimation, be careful not to specify too large of units for the price values in linear price estimation, or you will get poor convergence. For example, don't use a range bigger than about 10 units in the Price Values. So, if your prices shown to respondents were
100
250
350
Then in would be better to specify price values of
1.0
2.5
3.5
to associate with your price attribute. Just remember that the same units that you specify as price values must be used to interpret the price coefficients and must be used when specifying prices in the market simulator.
