Monadic Price Testing Excel Template

Description
Purchase behaviour is tested for several price points in monadic price testing, but each respondent is shown as just a single price. Because of this method, a large base of respondents is needed. Sequential monadic testing required a smaller sample where the respondents are shown different price points, one at a time. It is necessary to bear in mind that sequential monadic testing implies some biases and tends to show a higher purchase intention at the lower prices than monadic testing.

This is probably the best method for analysing purchase behaviour at a given price yet it can only be useful if we have an idea of the appropriate price points for a given market. If this isn't the case, then we would need to gather this information before carrying out the analysis via direct or indirect survey methods.

Once data has been collected, purchase behaviour can be summarized for the different price points and a demand curve can be made. Data is usually collected through surveys but can also be obtained from controlled experiments.