Rationale and design of moderated choice experiments: a strategic pricing application

Common methods for pricing research ask respondents to evaluate multiple pricing scenarios. Likely respondents can allow some carry‐over to occur from one scenario to the next. In a study wherein such carry‐over conflicts with the objectives of the research a different experimental design will be more appropriate. Moderated choice experimental designs are introduced and illustrated in a study of every day low price pricing of a consumer durable good. Substantive conclusions about durable goods pricing strategies and about moderated choice experiments are reported.