Constructing Demand Curves: A Comparison of Two Procedures using the Juster Scale

The Juster Purchase Probability Scale may be used to obtain estimates of demand at different price points and this data used to construct demand curves. This study compared two procedures for obtaining demand estimates at different price-points: using the same respondents for all price points; and using different samples of respondents for each price point. A mail survey of 1600 randomly selected people was used, with a response rate of 64%. The product was a Television Digital Recorder. The two methods produced demand curves with very different slopes. The curve derived from respondents exposed to all price-points demonstrated much greater price sensitivity than that based on independent responses to each price point. However, further research is required to determine which procedure produces the more accurate predictions. [PUBLICATION ABSTRACT]