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Welcome to our Help CenterGetting Started: Create Your First StudyPricing Study TypesWillingness To Pay (WTP)
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Understanding the WTP Pricing GraphPrice Pulse: Your Instant Pricing InsightsPossible Price PointsMaximum Demand and RevenueSegmentation AnalysisDemographic Filtering and AnalysisFaQ - Studies
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FaQ - Studies

Frequently Asked Questions Related to Studies and Results

How is your data distributed, and is it statistically significant?

Question: I would like to see the data distribution to understand if the "Maximum Demand" price point is statistically significant. Does Priceagent use a mean value? If the spread is wide, isn't the significance lower?

Answer: Unlike traditional market research, Priceagent describes the entire market landscape. A participant is not represented by a single data point, but rather by the range between their unique "highest" and "lowest" acceptable price points.

Our methodology ensures high reliability: with a sample of 100 qualified respondents, we achieve a 95% statistical significance with a margin of error of 5%. This means you can be confident that the peak demand identified reflects the true behavior of your target audience.

Read more on Statistical Significance and Sample Size. (Locked Article)

Understanding the Demand Percentage (%)

Question: In the Priceagent interface, what does the percentage figure next to "Demand" actually mean? For example, if it says "80% demand" at a specific price, what is that based on?

Answer: The Demand percentage represents the share of participants who are willing to pay that specific price. If you see 80% demand at 400 SEK, it means 80% of your qualified target group finds that price acceptable and would consider a purchase. This data is available for every individual price point on the curve.

Read more on Maximum Demand and Revenue

What is the difference between Maximize Demand and Maximize Revenue?

Question: My Price Pulse says: "At USD40 total demand peaks at 82%, whereas at USD59 revenue maximizes at 100. This shows that chasing absolute revenue drives a 21 percentage point (pp) drop in reach." What does this mean for my business?

Answer: This highlights the trade-off between Volume and Profitability.

  • Peak Demand (Reach): The price point where you attract the highest number of customers (in this case, 82% of the market).
  • Max Revenue: The price point where the total money earned is highest, even if you sell fewer units.

In your example, moving from 400 SEK to 599 SEK optimizes your total income but results in a 21 percentage point drop in reach. Essentially, you would sell 21% fewer "bottles" or units, but the higher price per unit compensates for that loss to reach 100% of your potential revenue score.

Read more about Price Pulse or Maximum Demand & Revenue

How should I interpret Demand Score "Percentage Point" (pp) shifts?

Question: What conclusion should I draw if I the Demand Score percentage shifts 10pp or 20pp in either direction?

Answer: These figures allow you to account for Volume Risk. A 10pp drop in reach means you are intentionally excluding 10% of your potential customer base in exchange for a higher price per unit (ARPU - Average Revenue Per User).

  • If your goal is Market Share, stay closer to the Peak Demand.
  • If your goal is Profitability, move toward the Max Revenue point, using the "pp drop" to understand exactly how many customers you are willing to "sacrifice" for that higher margin.
Read more about Revenue Score.


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