determining the price level in the choice experiment

[Saraw]

Dear Professor Bliemer,
I designed choice sets in Ngene but I noticed the price levels do not follow an order, for example, the price levels are 5 €, 7 €, and 10 €. Should I design again and determine a definite increment for the level of the price like 5€, 7.50€, and 10€?
Many thanks and best regards, Sara

[Michiel Bliemer]

It is not necessary that attribute levels are equidistant, you can use 5,7,10 without a problem.

Michiel

[Saraw]

Dear Professor Bliemer,
Thank you so much for your quick reply.
Best regards,
Sara

[Saraw]

Dear Professor Bliemer,
I have a question about determining price levels in the choice experiment.
I am going to design choice sets in Ngene but I just have the wholesale price of the product. This product does not exist in the market. so that I do not have the retailer's price for the product (I just know that the retailer's price is a wholesale price plus 35% and 45% of the wholesale price ). I would be so grateful if you could advise me on how I can determine the price levels.
Many thanks and best regards,
SarA

[Michiel Bliemer]

You simply use hypothetical price levels, they do not have to reflect actual prices. You mainly have to choose the range of price levels that you would like to use, which depends on what levels you believe could be realistic and should also reflect the range that you may want to use for forecasting. There is no general rule for determining which levels to use. The statistical rule will tell you to use a wide range as long as the levels are considered sufficiently realistic. Using a too narrow range would not allow much trade-offs in price.

Michiel

[Saraw]

Dear Pprofessor Bliemer,
thank you for clarifying. I will apply it.
Best regards,
Sara