Note: Expert user license is required to use this research method
1. Introduction
The Gabor-Granger Pricing Research Method is a widely used approach to measure price elasticity and identify the optimal price point for a product or service. By presenting respondents with different price points and asking if they would buy at each, it reveals how likely they are to purchase as the price changes. This helps businesses find the price that maximizes revenue and understand demand sensitivity.
2. Solution Template
If you want to run a Gabor-Granger study in Survalyzer, we recommend using our preconfigured solution template. This template ensures that results can be analyzed automatically.
Expert license required to use this template. Please reach out to your Account Manager or create a support ticket in case you want to use this template.
3. When to use?
The Gabor-Granger method works well in several scenarios, including:
- New Product Launch
Estimate the best starting price to maximize sales and revenue. - Price Increases
Test customer reactions to higher prices and measure possible sales decline. - Product Line Decisions
Assess price points for different product versions or configurations. - Revenue Optimization
Find the balance between price and sales volume to improve total revenue.
4. How to Conduct Gabor-Granger Research Using Survalyzer
Running a Gabor-Granger study is straightforward in Survalyzer. Here’s how:
Start with our downloadable Gabor-Granger Solution Template (link above). This includes all key setup elements described below.
Product Presentation and Qualification
First, respondents are shown a product description and asked if they would consider buying the product if the price was reasonable for them. This is a qualifying question, which filters out respondents who are not willing to purchase the product at any price point.
In solution template, only respondents that answer “Probably yes” or “Definitely yes” are allowed to move forward. You can adjust your qualifying question and choices as you see fit.
Purchase intent question at different price points
Next, respondent is asked a series of the same purchase intent question, but for different price levels, that you define in our solution template.
The questions logic is as follows:
First, random price point from the list is shown, to avoid initial anchor effect.
If the answer is top 2 (“definitely yes” or “probably yes”), respondent is next shown a random higher price point.
If the answer is bottom 3 (“definitely not”, “probably not”, or “unsure”), respondent is next shown a random lower price point.
By continuing this logic, the maximum acceptable price is identified for each respondent, which is later used for demand curve calculations.
Questionnaire finalization and distribution
The above described survey elements are the key part of the solution template. In order to finish, distribute, and analyze your survey results, please follow the steps below:
- Adjust price levels and texts related to Gabor-Granger method.
- Add any additional survey content that you need to complete your survey design.
- Cleand demo data and test your survey.
- Clean test data.
- Distribute the survey using Survalyzer’s distribution tools.
- Collect completed responses.
5. How to Analyze and Interpret Results
Once data is collected, Survalyzer’s Gabor-Granger Report (included in the solution template) will help you:
- Visualize the acceptance rate at each price point based on Willigness to Buy curve
You’ll see the percentage of respondents likely to buy at each price. - Identify the optimal price point based on Revenue Index curve
This is the price where expected revenue (price × acceptance rate) is maximized. - Understand price elasticity
See how demand changes across the tested price range. - Make pricing decisions confidently
Use insights to set prices that balance customer acceptance and profitability.
6. FAQ
Which interviews are included in the analysis?
All completed interviews are included in the Gabor-Granger Report.
Can I adjust the report (e.g., apply filters or combine with other data)?
Yes, the Gabor-Granger Report is a normal Survalyzer Dashboard Report, editable if you have the Expert license + Dashboard Extension.
How many respondents do I need for reliable results?
For pricing research, we recommend at least 200 respondents for solid insights, though smaller samples may be acceptable for preliminary studies.
Can I change the number of price points?
Yes, but remember that attached DIY solution templates support maximum 10 price point levels. If you need more, please contact your Survalyzer account manager to discuss custom support.