This method is rather accurate but it requires a significant investment and additional control monitoring. It is optimal for CAPI or CAWI-assisted in-hall product tests.

The standard Brand-Price Trade-Off includes:

• A real purchase simulation. Respondents are presented with a “shelf” with a range of tested and competitive products with indicated prices.
• Respondents are requested to make a choice and “purchase” a product.
• Then the price for the selected products is increased by a point while the prices for all other products remain unchanged. Respondents are then asked to make another “purchase”.
• The cycle continues until the price matrix has been filled in or until respondents give up on the products due to expensive price or switch to an alternative/substitute product.
• The procedure could be repeated for all studied products.
• On a number of occasions the test could run with a “none of the offered range” option. The test is completed once this option has been selected.

Brand-Price Trade-Off method helps to identify the following elements for the competitive and pricing environment for the studied product or service:

• The key competitors for the product under survey, i.e. brands perceived by respondents as alternatives for the studied product;
• Price elasticity for the studied product, for instance, a price increase impact on its market share;
• The switching price point, the price level where consumers of competitive brands are likely to switch to the studied product;
• The correlation between the price changes for the tested product and sales volume;
• Consumer reaction towards price changes forecast.