Journal of Student Research 2015

Journal Student Research

78

Descriptive Statistics The range of acceptable prices is the optimal price for firms to set their price. The difference between the optimal price and indifference price establishes consumer’s price-stress (Hofstetter 2009). Consumer price stress is a tool we can use to see how price-conscious consumers are. This tool has historically been utilized by firms that receive a majority of their revenue from inexpensive, high volume, and low mark-up items. The price sensitivity, in this case, is slight . A priori expectations were that statistical analysis software would be homogeneous and for this reason, exhibit a much larger price stress. Price stress is analogous to price elasticity. The demand function near the end of this graph needs further exploration. At the high-end stated prices rise, which seems to defy what we know about the law of demand. The results collected back from the single round of surveys appeared to have been impaired by this bias since out of the 56 University of Wisconsin professors, only 20 completed with viable data. The dataset given required further research and gained no conclusive results from this experi ment.

GRAPH 2

WTP with Optimal, Indifference, Stress, and Acceptable Price Range.