How to Use the Gabor-Granger Method in Displayr

This article describes how to use the Gabor-Granger method to determine the price for a new product or service.

Requirements

A survey that asks respondents how likely they are to purchase an item at a particular price. For example, on a scale from 1 to 5, how likely are they to pay $1, $2, $3, $4, and $5 for a product?
A Displayr document with the data set from the survey mentioned above

Method

Step 1: Combine existing variables into a single variable set

Select the variables you want to combine.
Right-click and select Combine > As Variable Set.
Click Proceed Regardless if prompted. You'll get a new combined variable set.
With the new variable set selected, under Data > Properties > Structure in the object inspector , select Binary - Multi: non-mutually exclusive categories
Click Fix.
Make sure "Yes" is checked, then click OK. At this stage, you may want to simplify the labels for each price point and reduce them to the $ value only.

Step 2: Create a table and then create an R calculation

There are several ways to work out the total amount of revenue from each option. For example, doing it by variables or by creating an output, and multiplying by the $ value in an R calculation. In this article, we've taken the latter approach.

Drag the variable set from above onto the Page to create a table.
From the object inspector , under Data > Statistics > Cells make sure to select only Count (deselect any others).
Right-click and select Hide to make sure this output doesn't get published later.
Note the General > General > Name of the output, as you'll need that below. In my example, it's table.Q.
In the toolbar, select Calculation > Custom Code and click on the page to place the calculation.
In the R Code editor, paste in the code below. It simply takes the count of each dollar value selected and multiplies it by the actual dollar value to give you the total sum for each. Note that the order of things is important here, i.e., that the rows in the table should be in the same order as the dollar values on the first line of the code.
```
dollarvals <- c(3.5, 3, 2.5, 2, 1.5)
table.Q.3[!rownames(table.Q.3) %in% c("NET")] * dollarvals
```
7. Click Calculate in the object inspector .