Determining how much the average consumer is willing to pay for a product is an essential step in determining the optimal price. One major problem here is that most people, whether on purpose or not cannot tell you the truth about their future buying behavior at different prices.
The NeuroPricing® Toolbox enables us to determine willingness-to-pay through a worldwide uniquely designed combination of EEG brainscan measures and psychophysics. You do not have to rely on questionable explicit statements by the consumer any more.
To measure the willingness-to-pay, we ran a university funded study. We asked subjects to come to the lab and recorded their EEG. On a screen we presented them with the price for a small cup of Starbucks coffee. Immediately after that we showed them a either the word “cheap” or “expensive”. The subject then either agrees or disagrees via button press, thus telling us whether he or she perceived the price as cheap or expensive. This way we were able to record the brain response to the price and to the attributes expensive and cheap.
In the following graph one can see the brain response to the presented price. It is one component of the immediate brain response, which is strongest when the price is reasonable. However, when the brain had to process unexpected prices, feelings like shock, doubt or surprise surfaced.
We were able to visualize their equivalents in the EEG data via a series of complex analyses. As you can see in the graph, the brain reacts stronger to a matching price than to one that doesn’t fit. The strength of the brain response at the different electrode positions is illustrated in colors.