ACBC summed pricing

Question

Hello, I am doing ACBC first time using summed pricing.

Price range for all products combinations is [£3.5, £30], and allow [-30%, +30%] price adjustment, which should be [£2.5, £39].

However, after running HB analysis, I got price utilities range [-£2.6, £42.5].  I have double checked the summed price input which are correct. we have started the field work. Just wanted to see whether there is any major concern to stop the field work at this stage.

Many thanks in advance!

Answer 1

The software tries to "guess" what the theoretical highest and lowest prices shown to respondents could be.  It sometimes is wrong regarding, this, but it is not a problem since it doesn't affect the validity of data collection.  When you finish data collection, you can run the "counting" analysis and on one of the tabs it reports the highest and lowest prices ever shown to any respondents.  When you run HB estimation, you can edit the fields in which you specify the smallest and largest prices you want utilities calculated for and moved into the simulator for conducting simulations.  You can specify the end price points there (and users often specify the min and max prices ever shown to any respondents), including any intermediate pricing steps (should you be specifying log-linear price function  or the popular piece-wise pricing functions).

Comments

I am so glad to hear this. Massive thank you for your response Bryan at the holiday time. Happy Thanksgivings!