Gabor-Granger Pricing Method
The Gabor-Granger pricing method determines the price elasticity of products and services. Developed by two economists, André Gabor and Clive Granger, it has been used since the 1960s. It is particularly useful when:
- You want to get a directionally correct estimate for willingness to pay for the product.
- You want to find revenue-optimising price points.
- All the other components (or attributes) of the product or service are fixed and cannot be changed.
- You only want to look at your brand or SKU without considering competition.
Using Gabor-Granger to measure customer value of online book streaming.
The aim is to find the maximum price each respondent is willing to pay for a product.
Gabor-Granger surveys can be automatically translated to more than 30 languages.
Bring your own respondents or buy quality-assured panel respondents from us.
Main outputs of Gabor Granger
Price elasticity chart
The price elasticity of demand curve shows customers' willingness to pay for your product at different price points. The steeper the demand curve, the more price-sensitive customers are in relation to your product.
Revenue vs. price chart
The “revenue vs. price” curve helps identify revenue-maximising price points.
For example, this chart below suggests that the revenue-maximising price is around $7.99.
Complete solution for pricing research
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