Setting up a Van Konan Price Optimization Research Test

In the survey editor, Van Konan can be found under Research Tests and is represented by an icon of a price tag with a dollar ($) sign. When you add this research test you will be given a few prompts and will have the ability to add on Max Revenue, Max Sales Frequency, and Max Profit.

Regardless of selected add-ons, there are three key components to preparing your Van Konan.

The main “product description” field is where the description of your offering should be placed. All relevant information consumers need to know to fairly evaluate their willingness to pay should be noted here. This often includes the brand and/or product name plus key features or benefits. A picture may also be included if available.

 

The Estimated Retail Price field is required prior to survey launch as it is how the system knows the price format to use for the respondent task. This value is never shown to respondents and can be modified on the results during analysis.

 

These dropdowns are to define the language that should be used. The first dropdown defines if the offering should be referred to as a product, package, or service. The second dropdown defines if the offering is for purchase, subscription, or sign up.

 

Enabling Max Revenue, Sales Frequency, and Profit

To enable the various additional Van Konan options, click the desired option to turn the checkmark blue. As noted earlier, some add-ons have dependencies and selecting one may automatically turn on others.

 

If you want to use Max Profit but Max Sales Frequency is not needed, click the “ON” text on the right side to toggle that option to OFF. Do not click the checkmark as this will remove both Max Sales Frequency and Max Profit.

 

Inputs for Max Revenue, Sales Frequency, and Profit

Each add-on will trigger additional input boxes as shown below.

Max Revenue triggers an input box for the estimated Total Addressable Market, or TAM. If a custom value is not specified, the model will default to one thousand (1000). This value is never shown to respondents and can be modified during analysis.

Max Sales Frequency triggers two dropdowns, each representing the ends of a reasonable purchase frequency timeframe. Once set, click “adjust the frequency scale” to view the 8-point scale and explore alternate wordings for each scale point.

Max profit triggers a table to input unit cost–quantity sets, allowing up to ten sets, and an option to indicate if unit cost changes are linear between sets. These values are never shown to respondents and can be modified on the results during analysis.

 

Additional Resources:

• A deeper look at the Van Konan Price Optimization Model.
• Information on the aytm website about the Van Konan Price Optimization Model.
• Explore the demo to see the results of a Van Konan Research Test.