The deck
The curves, the price spectrum and the key insights.
Four price questions become an acceptable range, an optimal price and an indifference point — for the whole market or each group in it.
01 / Four questions
Map the four price-perception questions in your file: too cheap, cheap, expensive and too expensive.
Each must hold numbers, in one currency. Add a subgroup — region, segment, channel or plan tier — and the whole analysis runs again for each group.
02 / Answers that add up
A respondent counts only if their four prices rise in order — too cheap below cheap, below expensive, below too expensive.
The rest are set aside before anything is drawn, and the run needs at least 30 respondents left. Below that it stops and says how many it found, rather than drawing curves from too few.
03 / The range
Four cumulative curves cross at four price points — the floor, the ceiling, and two points inside.
Range low (PMC) and range high (PME) bound the acceptable range. The optimal price (OPP) is where the fewest reject it on price at either extreme; the indifference point (IPP) is where as many call it cheap as expensive.
Crossings are interpolated between the prices respondents gave, so a price point can fall between them. If two curves never cross, that point is reported as missing rather than guessed. The range’s width is reported too, in money and as a share of its midpoint.
04 / The answer
The PowerPoint shows the price spectrum, the four price points and what they mean.
Sample and methodology · Price sensitivity curves, as an editable chart · Price spectrum analysis · Key insights · Conclusion — or, with a subgroup, the same for every group.
The deliverables
The curves, the price spectrum and the key insights.
The price points, the perceptions behind them and the method.
Every curve at every price, as Excel — one per subgroup.
The four curves and their crossings, ready for your slides.
Use it when you hear
Before you start
Testing a shortlist of set prices instead? That’s Gabor-Granger — Gabor-Granger
Four price questions, an acceptable range and an optimal price — in a deck you can take into the pricing meeting.