Gabor-Granger method

What are the benefits of a Gabor-Granger analysis?

A Gabor-Granger analysis allows you to discover the price elasticity of your product or service. Consumers are asked about their purchase intention at different price levels. This produces a clear demand curve that shows how willingness to buy changes at different prices. Ultimately, you gain insight into the optimal price: the point at which sales are maximized.

In addition, you can compare scenarios, such as what happens if you increase or decrease the price. This makes it a powerful tool for making data-driven decisions about pricing strategies.

Why choose the Gabor-Granger method?

The Gabor-Granger method offers a number of important advantages. It is a simple and efficient way to quickly gain insights into price sensitivity, without complicated analyses and without presenting respondents with complex questions. By working with four standard response options (very unlikely, fairly unlikely, fairly likely, and very likely), you get a consistent and easily interpretable picture of consumer behavior. The results are immediately applicable and help you to strategically align prices with the market. What's more, this method allows you to test different pricing strategies, such as promotions or premium options, and minimize the risk of making the wrong pricing decisions.

The Gabor-Granger method is a reliable solution for any organization that wants to get a grip on its pricing strategy.