Hi everyone,
I've got around 250 respondents of an ACBC-survey. I have five non-price attributes and use a summed pricing approach with a base price (80) and different prices per attribute level (steps of 5, ranging from 0 to 15, positive and negative, +/- 30 % variation).
Now, when analysing the data the software sets default price values for linear coding of the price function. Those values are -52 and 19.5, which is suprising since respondents where shown prices between 2 and 265 (according to the counts analysis). If I set the price values to 2 and 265, the relative importance for price jumps from around 25 % to around 50 %. Same effect occurs for piecewise coding (which I would in fact prefer, because I identified a breakpoint at 50).
For both ways of price coding, the average utilities are quite similar, pct. certainty is close to .5, RLH aorund .65 and predicition of holdout tasks is basically the same. Only the None-Parameter jumps from -100 (linear) to +60 (piecewise). So I am wondering:
1) From where are the default prices taken?
2) Is there an explanation for the big jump in relative importance for price and the None-Parameter?
Thank you very much!
Best regards,
Thomas