Price Laddering

Zachary Anderson
Last updated: 12 Apr 2021
Written for: Lighthouse Studio 9.3

Warning: Sawtooth Software considers Choice-Based Conjoint and Adaptive Choice-Based Conjoint as the preferred techniques for measuring price sensitivity. Please use the Price Laddering approach with caution.

Priceladdering

Description

Respondents answer a series of pricing questions. The question completes once the highest price the respondent is willing to pay has been determined.

Instructions

  • Requires Better Lighthouse Library.
  • Header 1 has two possible question texts, the former for a five-point Price Laddering question and the latter for a yes-no Price Laddering question.
  • Line 3 of the HTML defines the prices to be offered to respondents, from least to greatest.
  • The variables "_DynamicPriceX," "_DynamicResponseX," and "_FixedResponseX" should be duplicated so that one of each variable exists for each price on line 3.

Options

  • The first price a respondent sees is determined by line 4 of the HTML:
    • my $start = 4; - Respondents start on the fourth lowest price.
    • my $start = 'middle'; - Respondents start on the middlemost price.
    • my $start = 'random'; - Respondents start on a random price.
  • The acceptable and unacceptable response options are defined on lines 5 and 6 of the HTML. It is standard to either include two acceptable responses and three unacceptable responses (default), or one acceptable response and one unacceptable response ("Yes" and "No").
  • Line 7 defines how the question selects the next price to display. 1 will display the next adjacent price; 2 will display a random valid price.
  • Whether the question should require a response can be set on line 8. The error message to display if not responded to can be set on line 9.