GaborGranger

The Gabor-Granger technique is a market research method used to estimate consumer demand and determine an appropriate price for a product or service. It relies on structured surveys to capture how likely consumers are to purchase at different price points.

In practice, respondents are shown the same product or concept at a range of preselected prices. For each price, they indicate their likelihood of buying, often on a numeric scale. The responses are then aggregated to produce a demand curve, from which price elasticity, potential revenue, and an optimal price can be inferred.

The method is valued for its straightforward design and practicality. It can yield rapid estimates of price sensitivity for new or existing products and is relatively inexpensive to implement. However, it has limitations common to stated-preference techniques: responses reflect intentions rather than actual purchases, making results susceptible to hypothetical bias. The choice and ordering of price points, framing, and respondent interpretation can also influence outcomes.

Historically, the technique was introduced in the 1960s and is commonly cited as Gabor-Granger. It remains one of several price-research tools used to complement other methods such as Van Westendorp pricing and conjoint analysis. Researchers often employ it alongside other approaches or real-market tests to validate findings and refine pricing decisions.