Gabor-Granger question type

The Gabor-Granger question type is used to measure price sensitivity and identify the maximum or minimum price respondents are willing to pay for a product or service. It works by showing respondents a series of prices and adjusting those prices based on their answers.

This method helps you understand both individual price thresholds and overall demand at different price points.

Examples of Business Questions to Use Gabor-Granger For:

• How price sensitive are consumers in my category?  Are we leaving money on the table?

• How should we price our newest offering?  What are the demand vs. price-point decisions we need to make?

• Which of these concepts/ pack designs/ claims/ SKUs is likely to command the higher price in-market?

• Will adding X to my product/ service grow its value enough to make it worth it?

• Is there a threshold at which a price increase would risk losing customers?  What is that threshold?

When building the question, you will configure several key parameters:

First, choose whether the tool should seek:

• Maximum value – the highest price a respondent is willing to pay

• Minimum value – the lowest price a respondent finds acceptable

This determines how the algorithm interprets and outputs the final result.

Set the full range of prices you want to test:

• Lower bound – the lowest price to test

• Upper bound – the highest price to test

Example:
Lower bound: $5.00
Upper bound: $20.00

The increment determines how much the price changes between iterations.

Example: Increment: $0.50

In this case, the algorithm will test prices such as: $5.00, $5.50, $6.00, … up to $20.00

The smaller the increment, the more precise your pricing estimate will be.

Choose how the value will be displayed:

• Currency (most common) in $USD

• Percent

• Other numeric formats depending on your study

You can also specify the number of decimal places (for example, 0, 1, or 2 decimals).

Typically, you will include:

• A concept, product description, or image

• Question text such as: “Would you buy this product at this price?”

• When the survey runs, the algorithm presents a price and adjusts based on the respondent’s answer.

Iteration 1: Would you buy this product at $10.00?

• If respondent selects Yes → next price increases

• If respondent selects No → next price decreases

The next question will display: “How about $10.50?” (or another increment)

This continues until the algorithm determines the respondent’s threshold or reaches the defined limits. The algorithm will always stay within the range you specified and move only in the increments you defined. Each respondent will generally see 3-5 iterations of price. 

Depending on your objective:

• Maximum value mode: The tool finds the highest price the respondent is willing to accept.

• Minimum value mode: The tool finds the lowest acceptable price.

Each respondent will have an individual calculated threshold based on their answers.

In the raw data export, each respondent will have a calculated field showing their:

• Maximum acceptable price, or

• Minimum acceptable price

This can be used for segmentation and deeper analysis.

In reporting tools, crosstabs, PowerPoint exports, and the platform UI, results are typically displayed as a demand curve 📈

This shows:

• Each incremental price tested

• The percentage of respondents willing to purchase at that price

This allows you to identify:

• Optimal pricing ranges

• Price elasticity

• Revenue-maximizing price points
  
  

✅ Include a clear product concept or description
✅ Use realistic price ranges
✅ Choose increments small enough for meaningful precision
✅ Use currency format for most pricing studies
✅ Ensure your question text clearly asks purchase intent