Paying the price – assessing the impact of different propositions in mitigating price increases.
Our client was working for a utility company who needed to simulate the impact of a price increase and see which parts of their proposition they could tailor to make the increase more acceptable.
A standard choice based conjoint was used with pricing tailored to each respondent’s current average spend. Results were calibrated to true market figures to convert conjoint utilities to an estimated take-up of different propositions at different prices.
Our client was able to recommend the optimum propositions to serve to different customers, while minimising churn caused by the price increase. The end client was extremely happy with the results.