Monadic Price Tests
Monadic testing is a commonly used pricing research technique. It is one of the least biased and most defensible ways to measure price sensitivity. There are several methodology variations of the monadic design (e.g. sequential monadic design, paired- comparison design and protomonadic design); which generally deal with the number of products respondents are exposed to. The follow is a description of how it works:
- Respondents in a market research interview (i.e. phone, in-person or web) are asked to consider a complete set of products and to choose the one that best meets their needs. One of the factors to be considered is the product’s price.
- This method is monadic due to the fact that each respondent is exposed to only one price scenario in the study.
Description of How it Works
A discrete choice methodology is usually preferable because it is generally more cost effective and provides powerful competitive insight. However, we would strongly recommend using monadic tests under the following specific conditions: