wholesale mens rings jewelry How to calculate the price of virtual income of Gabor Granger

Kenneth

November 24, 2022 at 8:29 am

kohls jewelry wholesale 1. Method Overview

(1) Research purpose

The purpose of using the Gabor Granger method for price research can be one of the two items below: First, testing the existing products of the company The impact of price changes on demand; second, determine the optimal price of new products and the impact of analyzing product prices on demand.

(2) The form of the question in the questionnaire

Is when using the Cabor Granger method, first ask the respondent to watch the actual product or product sample or product concept, and then ask the following questions :

q. "If this product is priced at P1, P2, P3, P4, or P5 on the market, how much is your possibility of buying it?"

This method requires manufacturers to give the test price in advance, and one of them will be widely accepted by consumers.

P1 P1 P2 P3 P4 P5

() () () () () () () ()

must not buy 1 1 1 1

In not to buy 2 2 2 2 2 2

cannot be decided 3 3 3 3

In 4 4 4 4 4
n n n n R n must buy 5 5 5 5 5 5

place P1 u003CP2 u003Cp3 u003Cp4 u003Cp5 u003Cp5, usually contains 5 or 6 price points.

(3) Selection of the price level

Muchive level should be set in the survey, and the most commonly used is to set 6-12 price levels. The price level is too much, the visit time is long, so the cost is too high, and the interviewee may not be able to cooperate, causing incomplete information. If the price level is too small, it may not be able to see the impact of changes in demand on demand.

Is the distance between the price level, usually about 4 % -5 % of the current price.

For example, the current price is 1.00 yuan, and the price level of 8 can be:

0.85, 0.95, 0.95, 1.05, 1.10, 1.15, 1.20

What products should be in the price level series? This depends on the purpose of research. If the purpose of the research is to see the impact of the price reduction on demand, the current price should be placed on the highest end of the series; if the purpose of the research is to see the impact of rising prices on demand, the current price should be placed in the previous level of the series. Generally, customers must get the increase in price and know the impact of price promotion on demand, so the current price is usually placed at the 3-5 level of the 10th price level.

For new products, the above methods have two problems. One is that there is no historical data to set the price level in the problem. On the other hand, the respondent does not use the product experience to answer the price test. The problem. In order to solve these two problems, the questionnaire of the product model test finally adds the above price testing problems. In this way, the interviewer has known about the new product during the product model test, and it is easier to answer the price test question. Essence As for the price level in the problem, you can refer to the price of competitive brands in the product target market.

(4) Selection of samples

The selection of samples depends on the purpose of price research. The sample should be extracted from non -users, so that it can be concluded that the price declines caused by the increase in share. Of course, the increased loyalty of product users or increased purchase volume will also lead to an increase in share. The former is the main.

If the purpose of the research is to test the impact of the demand after the price of the existing product rises, the sample should be extracted from the user, because the price increase will not make non -users become users.

. Data analysis method

P. First of all, a percentage of the number of respondents who are affirmed or possible for each price level. Pay attention to at a higher price level at a higher price level The respondents who answered below or may be purchased should be the same at a lower price level. Then use this percentage to calculate the imitation income, and its definition is as follows:

It imitation income is the price level × here to answer at this price level. Determine the price of the largest profit

according to the definition of income:

Paping = price × demand

When the price changes are changed, the changes in the value of the two are the same. Therefore, at a certain price level, the maximum value of the real income should be taken. Because the cost is the same, the profit at this price level is also the largest, which shows that we can use imitation income to infer the price level that makes the profit reach the maximum. This price is often called the optimal price.

Table 4-2 is a specific number example. The first column of the table is the price level in the test problem, with a total of 13 price levels. The second column is the percentage of the respondent who answered the respondent in the corresponding price level at the corresponding price level. Corresponding to the imitation income at the level of price. From the data of the imitation income column, it can be seen that when the price is 3.30 yuan, the maximum income value is the largest price, and it is also the largest price of product profits.

The price level (yuan)

Kengy or possible percentage (%)

Imitation income (yuan)

2.10

2.08
2.30

2.28

2.50
n98

2.45 n
2.70

2.65

2.90*

98
n2.84

3.10

2.94
3.30
n92 r
3.. 04

3.50

2.62
3.70
n67

2.48

3.90

2.14
4.10
n n n n n n n n n n n n n n n n n n n n n n n n n R n34

1.39

4.30
18
n0.77
n4. 50

(2) Elasticity of demand curve and price demand

Horizontal coordinates, the percentage that consumers must or may buy at this price are vertical coordinates, so that the test products rose, decreased by 5 %, 10 %, 15 %, 20 %, ... When, the consumer is at the time, the consumer is at the time, the consumer is at the time, and the consumer is at the time. At this price level, it may be affirmed or may buy a transformation curve. Figure 4-1 is a schematic diagram of the demand curve.

The demand curve can display the three key measurements of the test product: ① Maximum Franchise Potential (maximum potential permissions), it is the demand for the product at the lowest price; ② (demand price elasticity), reflects price changes A percentage point, the percentage of changes in demand; ③ Core Loyals (core loyal customers), which is a percentage of people who still choose to test the product at the highest price. These people are loyal customers who test products.

In from the demand curve, it can be seen that as the price increases, the demand is reduced evenly, or there is a special price point called the price limit (Price Threshold). Figure 4-2).

The requirements of the examples in Table 4-2 are shown in Figure 4-2. From the figure, when the price rises from 2.10 yuan to 2.90 yuan, the demand for the product is very very very demand for product demand is very very very very very demand for product demand is very very good High, the price is 3.30 yuan is a price limit. Once the price exceeds this point, the demand suddenly decreases a lot. It can be seen from the previous (1) that this price is also the largest price. Let ’s calculate the price demand for two prices before and after the price.

1. Before the optimal price

(1) When the price increases from 2.90 yuan to 3.10 yuan, the percentage percentage that may be purchased will be reduced from 98 % to 95 %. The formula of price demand elasticity can calculate the elasticity equal to -0.44.

(2) When the price increases from 3.10 yuan to 3.30 yuan, the percentage of affirmative or possible purchases will be reduced from 95 % to 92 %, and the price demand is elasticity of -0.49.

2. After the optimal price

(1) When the price rises from 3.30 yuan to 3.50 yuan, the percentage percentage that may be purchased will be reduced from 92 % to 75 %. The price elasticity is -3.05.

(2) When the price increases from 3.50 yuan to 3.70 yuan, the percentage of affirmative or possible purchases will be reduced from 75 % to 67 %, and its price elasticity is -1.87.

. This can be seen that before the optimal price, the absolute value of the price demand is less than L, and consumers are not sensitive to the price. After the optimal price, the absolute value of the price demand is greater than that 1. Consumers are very sensitive to price, which has pointed out that the price of 3.30 yuan is a price limit that can also get the same conclusion.

It also can be seen from Figure 4-2 that the product has no loyal customers. When the price reaches 4.50 yuan, all customers are lost.

(3) Identifying the price segment market

(1) From the shape of the demand curve, we can analyze whether there is a price segment. There is no price segmentation market for this product. As the price rises, customers gradually disappear. When the price reaches 4.50 yuan, all customers are lost.

(2) Figure 4-1 Demand curve indicates that there are two price segments in the product. In a market segment, consumers are more sensitive to prices. As the price rises, this segmentation Customers in the market have gradually lost. In another market segment, consumers do not care about prices. Even if the price rises a lot, they still insist on buying products. Customers in this market segment are very loyal to products.

(3) Figure 4-3 Demand curve indicates that the product also has two price segments. A market segment customer is more sensitive to the price at a lower price. When another market price changes in the medium range, its loyalty is still very high, but when the price becomes higher, this part of the customers begin to lose.

(4) Figure 4-4 Demand curve indicates that there are three price market segments in the product. A market segment customer is more sensitive to the price at a lower price. When another market price changes in the medium range, its loyalty is high, but when the price is high, it is lost rapidly. The third segment market does not care about the price. Even if the price is high, they still insist on going buy product.

(4) Precautions when using the analysis results

1. Gabor Granger method is assumed that other marketing combination factors such as channels, advertising, sales promotion are unchanged, and competition is competitive When the price of the brand is also unchanged, the impact on sales when testing the price of the product. If other factors change, the conclusions you get cannot be applied.

2. As pointed out in 1, the Gabor Granger law fakes other unchanged, but it is difficult to ensure that other aspects are unchanged for a long time. The optimal price will not change throughout the period.

3. The Gabor Granger method uses statistical methods to obtain the optimal price, so there will definitely be an error. For the sake of insurance, the lower limit of 95 % of the best price of the optimal price is used as conservative optimal prices. The star number at the first price of 2.90 yuan in Table 4-2 indicates that it is the best price of conservative.

. Actual examples

The following is a certain product using the Gabor Granger method for price research in the concept test. Tests were conducted in Beijing and Shanghai, and each city visited 150 respondents. The related questions in the test questionnaire are as follows:

a1. If the price of this product is RMB 400, how is your interest in buying it?

()

will definitely buy it .......................................................................................................................................................................................................................................................................................................................................................... for 5

Maybe I can buy ...............................................................................................................................................................................................................................................................................................................................................................................................stard ………………… 3

may not buy .............................................................................................................................................................................................................................................................................................................................................. 2

............................................................................................................................................................................................................................................................................................................ 1

a2. If the price of this product is RMB 520, how is your interest?

()

a3. If the price of this product is RMB 670, how is your interest?

()

will definitely buy ........................................................................................................................................................................................................................................................................................................................................................ for 5

a4. If the price of this product is RMB 720, how is your interest?

()

The test results are shown in Table 4-3:

The price (yuan)

Beijing

n
imitation income

demand elasticity

must be or may be bought percentage (%)
n
demand elasticity

400

85
340

-0.59 n
67

268

-1.24

520

70
364
n -.98

218

-2.31
670
n30 r
21

-6.70

94 r n
-3.83
n720

108

-
10

72
-

can be seen from Table 4-3: ① In various price levels, Beijing consumers accept average higher than Shanghai consumers. ② In Beijing, the optimal price of products is 520 yuan, while in Shanghai is 400 yuan. ③ The price demand at a price level of 670 yuan is far greater than the price level of 400 yuan and 520 yuan, so it is not suitable for the price to be set at 670 yuan or above.

1 thought on “wholesale mens rings jewelry How to calculate the price of virtual income of Gabor Granger”

Kenneth
November 24, 2022 at 8:29 am

kohls jewelry wholesale 1. Method Overview

(1) Research purpose

The purpose of using the Gabor Granger method for price research can be one of the two items below: First, testing the existing products of the company The impact of price changes on demand; second, determine the optimal price of new products and the impact of analyzing product prices on demand.

(2) The form of the question in the questionnaire

Is when using the Cabor Granger method, first ask the respondent to watch the actual product or product sample or product concept, and then ask the following questions :

q. "If this product is priced at P1, P2, P3, P4, or P5 on the market, how much is your possibility of buying it?"

This method requires manufacturers to give the test price in advance, and one of them will be widely accepted by consumers.

P1 P1 P2 P3 P4 P5

() () () () () () () ()

must not buy 1 1 1 1

In not to buy 2 2 2 2 2 2

cannot be decided 3 3 3 3

In 4 4 4 4 4
n n n n R n must buy 5 5 5 5 5 5

place P1 u003CP2 u003Cp3 u003Cp4 u003Cp5 u003Cp5, usually contains 5 or 6 price points.

(3) Selection of the price level

Muchive level should be set in the survey, and the most commonly used is to set 6-12 price levels. The price level is too much, the visit time is long, so the cost is too high, and the interviewee may not be able to cooperate, causing incomplete information. If the price level is too small, it may not be able to see the impact of changes in demand on demand.

Is the distance between the price level, usually about 4 % -5 % of the current price.

For example, the current price is 1.00 yuan, and the price level of 8 can be:

0.85, 0.95, 0.95, 1.05, 1.10, 1.15, 1.20

What products should be in the price level series? This depends on the purpose of research. If the purpose of the research is to see the impact of the price reduction on demand, the current price should be placed on the highest end of the series; if the purpose of the research is to see the impact of rising prices on demand, the current price should be placed in the previous level of the series. Generally, customers must get the increase in price and know the impact of price promotion on demand, so the current price is usually placed at the 3-5 level of the 10th price level.

For new products, the above methods have two problems. One is that there is no historical data to set the price level in the problem. On the other hand, the respondent does not use the product experience to answer the price test. The problem. In order to solve these two problems, the questionnaire of the product model test finally adds the above price testing problems. In this way, the interviewer has known about the new product during the product model test, and it is easier to answer the price test question. Essence As for the price level in the problem, you can refer to the price of competitive brands in the product target market.

(4) Selection of samples

The selection of samples depends on the purpose of price research. The sample should be extracted from non -users, so that it can be concluded that the price declines caused by the increase in share. Of course, the increased loyalty of product users or increased purchase volume will also lead to an increase in share. The former is the main.

If the purpose of the research is to test the impact of the demand after the price of the existing product rises, the sample should be extracted from the user, because the price increase will not make non -users become users.

. Data analysis method

P. First of all, a percentage of the number of respondents who are affirmed or possible for each price level. Pay attention to at a higher price level at a higher price level The respondents who answered below or may be purchased should be the same at a lower price level. Then use this percentage to calculate the imitation income, and its definition is as follows:

It imitation income is the price level × here to answer at this price level. Determine the price of the largest profit

according to the definition of income:

Paping = price × demand

When the price changes are changed, the changes in the value of the two are the same. Therefore, at a certain price level, the maximum value of the real income should be taken. Because the cost is the same, the profit at this price level is also the largest, which shows that we can use imitation income to infer the price level that makes the profit reach the maximum. This price is often called the optimal price.

Table 4-2 is a specific number example. The first column of the table is the price level in the test problem, with a total of 13 price levels. The second column is the percentage of the respondent who answered the respondent in the corresponding price level at the corresponding price level. Corresponding to the imitation income at the level of price. From the data of the imitation income column, it can be seen that when the price is 3.30 yuan, the maximum income value is the largest price, and it is also the largest price of product profits.

r

The price level (yuan)

Kengy or possible percentage (%)

Imitation income (yuan)

2.10

99

2.08
2.30

99

2.28

2.50
n98

2.45 n
2.70

98

2.65

2.90*

98
n2.84

3.10

95

2.94
3.30
n92 r
3.. 04

3.50

75

2.62
3.70
n67

2.48

3.90

55

2.14
4.10
n n n n n n n n n n n n n n n n n n n n n n n n n R n34

1.39

4.30
18
n0.77
n4. 50

0

0

(2) Elasticity of demand curve and price demand

Horizontal coordinates, the percentage that consumers must or may buy at this price are vertical coordinates, so that the test products rose, decreased by 5 %, 10 %, 15 %, 20 %, ... When, the consumer is at the time, the consumer is at the time, the consumer is at the time, and the consumer is at the time. At this price level, it may be affirmed or may buy a transformation curve. Figure 4-1 is a schematic diagram of the demand curve.

The demand curve can display the three key measurements of the test product: ① Maximum Franchise Potential (maximum potential permissions), it is the demand for the product at the lowest price; ② (demand price elasticity), reflects price changes A percentage point, the percentage of changes in demand; ③ Core Loyals (core loyal customers), which is a percentage of people who still choose to test the product at the highest price. These people are loyal customers who test products.

In from the demand curve, it can be seen that as the price increases, the demand is reduced evenly, or there is a special price point called the price limit (Price Threshold). Figure 4-2).

The requirements of the examples in Table 4-2 are shown in Figure 4-2. From the figure, when the price rises from 2.10 yuan to 2.90 yuan, the demand for the product is very very very demand for product demand is very very very very very demand for product demand is very very good High, the price is 3.30 yuan is a price limit. Once the price exceeds this point, the demand suddenly decreases a lot. It can be seen from the previous (1) that this price is also the largest price. Let ’s calculate the price demand for two prices before and after the price.

1. Before the optimal price

(1) When the price increases from 2.90 yuan to 3.10 yuan, the percentage percentage that may be purchased will be reduced from 98 % to 95 %. The formula of price demand elasticity can calculate the elasticity equal to -0.44.

(2) When the price increases from 3.10 yuan to 3.30 yuan, the percentage of affirmative or possible purchases will be reduced from 95 % to 92 %, and the price demand is elasticity of -0.49.

2. After the optimal price

(1) When the price rises from 3.30 yuan to 3.50 yuan, the percentage percentage that may be purchased will be reduced from 92 % to 75 %. The price elasticity is -3.05.

(2) When the price increases from 3.50 yuan to 3.70 yuan, the percentage of affirmative or possible purchases will be reduced from 75 % to 67 %, and its price elasticity is -1.87.

. This can be seen that before the optimal price, the absolute value of the price demand is less than L, and consumers are not sensitive to the price. After the optimal price, the absolute value of the price demand is greater than that 1. Consumers are very sensitive to price, which has pointed out that the price of 3.30 yuan is a price limit that can also get the same conclusion.

It also can be seen from Figure 4-2 that the product has no loyal customers. When the price reaches 4.50 yuan, all customers are lost.

(3) Identifying the price segment market

(1) From the shape of the demand curve, we can analyze whether there is a price segment. There is no price segmentation market for this product. As the price rises, customers gradually disappear. When the price reaches 4.50 yuan, all customers are lost.

(2) Figure 4-1 Demand curve indicates that there are two price segments in the product. In a market segment, consumers are more sensitive to prices. As the price rises, this segmentation Customers in the market have gradually lost. In another market segment, consumers do not care about prices. Even if the price rises a lot, they still insist on buying products. Customers in this market segment are very loyal to products.

(3) Figure 4-3 Demand curve indicates that the product also has two price segments. A market segment customer is more sensitive to the price at a lower price. When another market price changes in the medium range, its loyalty is still very high, but when the price becomes higher, this part of the customers begin to lose.

(4) Figure 4-4 Demand curve indicates that there are three price market segments in the product. A market segment customer is more sensitive to the price at a lower price. When another market price changes in the medium range, its loyalty is high, but when the price is high, it is lost rapidly. The third segment market does not care about the price. Even if the price is high, they still insist on going buy product.

(4) Precautions when using the analysis results

1. Gabor Granger method is assumed that other marketing combination factors such as channels, advertising, sales promotion are unchanged, and competition is competitive When the price of the brand is also unchanged, the impact on sales when testing the price of the product. If other factors change, the conclusions you get cannot be applied.

2. As pointed out in 1, the Gabor Granger law fakes other unchanged, but it is difficult to ensure that other aspects are unchanged for a long time. The optimal price will not change throughout the period.

3. The Gabor Granger method uses statistical methods to obtain the optimal price, so there will definitely be an error. For the sake of insurance, the lower limit of 95 % of the best price of the optimal price is used as conservative optimal prices. The star number at the first price of 2.90 yuan in Table 4-2 indicates that it is the best price of conservative.

. Actual examples

The following is a certain product using the Gabor Granger method for price research in the concept test. Tests were conducted in Beijing and Shanghai, and each city visited 150 respondents. The related questions in the test questionnaire are as follows:

a1. If the price of this product is RMB 400, how is your interest in buying it?

()

will definitely buy it .......................................................................................................................................................................................................................................................................................................................................................... for 5

Maybe I can buy ...............................................................................................................................................................................................................................................................................................................................................................................................stard ………………… 3

may not buy .............................................................................................................................................................................................................................................................................................................................................. 2

............................................................................................................................................................................................................................................................................................................ 1

a2. If the price of this product is RMB 520, how is your interest?

()

will definitely buy it .......................................................................................................................................................................................................................................................................................................................................................... for 5

Maybe I can buy ...............................................................................................................................................................................................................................................................................................................................................................................................stard ………………… 3

may not buy .............................................................................................................................................................................................................................................................................................................................................. 2

........................................................................................................................................................................................................................................................................................................ 1

a3. If the price of this product is RMB 670, how is your interest?

()

will definitely buy ........................................................................................................................................................................................................................................................................................................................................................ for 5

Maybe I can buy ...............................................................................................................................................................................................................................................................................................................................................................................................stard ………………… 3

may not buy .............................................................................................................................................................................................................................................................................................................................................. 2

.......................................................................................................................................................................................................................................................................................................... 1

a4. If the price of this product is RMB 720, how is your interest?

()

will definitely buy ........................................................................................................................................................................................................................................................................................................................................................ for 5

Maybe I can buy ...............................................................................................................................................................................................................................................................................................................................................................................................stard ………………… 3

may not buy .............................................................................................................................................................................................................................................................................................................................................. 2

...................................................................................................................................................................................................................................................................................................... 1

The test results are shown in Table 4-3:

The price (yuan)

Beijing

n
imitation income

demand elasticity

must be or may be bought percentage (%)
n
demand elasticity

400

85
340

-0.59 n
67

268

-1.24

520

70
364
n -.98

42

218

-2.31
670
n30 r
21

-6.70

14

94 r n
-3.83
n720

15

108

-
10

72
-

can be seen from Table 4-3: ① In various price levels, Beijing consumers accept average higher than Shanghai consumers. ② In Beijing, the optimal price of products is 520 yuan, while in Shanghai is 400 yuan. ③ The price demand at a price level of 670 yuan is far greater than the price level of 400 yuan and 520 yuan, so it is not suitable for the price to be set at 670 yuan or above.

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