Hey there,
I just read "Becoming an expert in conjoint analysis" (I really recommend it!) and still have a few questions about summed and conditional pricing.
My professor wants me to show as realistic prices as possible. In a first approach, I defined 61 different price levels showing all possible sums of attributes that define the price. Now we know that we will not have sufficent respondents for so many levels and, if I understood right, due to the correlation it would not be possible to calculate the part-worth of the price attribute.
Now we were thinking about conditional pricing in CBC. As all other attributes (5) define the price, I was thinking about including all of them in a conditional relationship and defining all possible sums, each for "low", "medium" and "high" price levels. Did I understand right that for this approach, there are e.g. 3 different price levels and "low" would be the summed price for the alternative in the choice task -30%, "medium" the exact one and "high" the sum +30%, all rounded? And if so, how many respondents do I need? Does it depend on the 3 defined price levels or on the 41 actual ones? There are 8 choice task with 3 sets each.
We're not sure if we understood correctly that summed pricing could also be possible for CBC, not only for ACBC. I just tried it in excel as described in the book. In that case, if I implemented it in CBC as conditional relationship for attributes, how many price levels should I define and how should I discriminate between them? If I just used random shock for 3 price attributes, after rounding there is no price difference, but maybe I just didn't get the concept right.
For both cases: Does the number-of-levels-effect apply but would it be manageable? And am I right that I could just import a lookup-table in the simulator for analysis in both cases?
Sorry for so many questions! Many thanks in advance!
Lisa