Gabor-Granger method

The Gabor-Granger method is a method developed by the economists André Gabor and Clive Granger to determine willingness to pay.

The aim of the method is to determine the relationship between price and sales within a predefined segment by asking the target group directly about their willingness to pay. The test persons are asked at different price points about the probability that they would buy the examined product at this price. Depending on the price consciousness of the respondents, they react with varying sensitivity to a price change. Subject to the aggregated responses, the price sensitivity for a segment can hence be determined. An essential advantage of this analysis method is the low expenditure of time and money.

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