An Application of Sequential Analysis in Pricing Research

Describes and discusses a series of researches specifically designed for analysis by sequential techniques — these were aimed at investigating the relationship between price, and customer preference, for a consumer durable article. Defines sequential analysis as a technique concerned with a cumulative simple analysis of results as they are obtained. Documents that investigation of the technique found that, for some market research applications, it has advantages over the conventional technique of completion of field research, followed by full analysis of the data obtained. Uses a sequential analysis chart to add weight to this technique, and discusses results to two test market product candidates (X and Y). Follows up this research by stating sequential analysis is a simple, yet elegant, technique which appears to open new possibilities to market research personnel in many areas. Concludes that sequential analysis has been proved to offer a simple, reliable pricing framework in a situation of dichotomous choice.