Abstract:

Both quantitative and qualitative researchers often rely on measures of perceived value to gauge interest and purchase likelihood for new product concepts. But do assessments of value provide meaningful purchase heuristics? If so, can small sample tests be improved as assessment tools through the application of statistical procedures involving non-traditional market research techniques such as Monte Carlo simulations? This paper provides the results of exploratory research and analysis into these subjects. Research results suggest that meaningful estimates of purchase likelihood can be derived from the Price Sensitivity Meter (PSM) technique with thoughtful application of Monte Carlo simulation techniques. Research also suggests that Monte Carlo simulations correct for an inherently optimistic dynamic within traditional PSM analysis.