Cognitive Books - pricing research

We surveyed over 90 people living with dementia, their supporters and people working with those with dementia to understand the value of Cognitive Books and the prices people would pay for them.

Part one: van Westendorp pricing research

The Van Westendorp Price Sensitivity Meter (PSM) is a research method to determine the optimal price range for a product or service. It involves asking respondents four key questions related to pricing perceptions, helping identify the upper and lower limits of acceptable pricing. By analysing responses, a price sensitivity curve is constructed, indicating the acceptable price range where consumer interest aligns with perceived value. This approach helps make informed pricing decisions to meet consumer expectations.

We described the features of the best format for a Cognitive Book, based on our reading research. We then asked respondents questions about what prices were deemed too cheap, a bargain, getting expensive and too expensive.

You can see from the image below that the optimal price for a Cognitive Book is £15.00, with an acceptable price range of £12.40 to £16.10.

Part two: conjoint analysis

Conjoint analysis helps understand consumer preferences by presenting people with different product characteristics. It helps determine the importance of different features, assess price sensitivity, identify market segments, and optimise product offerings. By revealing the trade-offs consumers are willing to make, conjoint analysis guides decision-making in product development and marketing.

We asked our survey respondents to state which of the features from our previous research they were willing to change when pricing is included from the following:

  • A donation to Alzheimer’s Society

  • Printing in either Europe or China

  • Hardback or paperback

  • Including an audio version

You can see from the image (“Most popular options in conjoint analysis”) that the optimal version of a Cognitive Book is priced at £15.99 (53% of respondents opt for this model). It includes the donation to Alzheimer’s Society and the audio version, it’s printed in Europe and it’s a hardback copy . The next most popular is switching to paperback (12%), followed by moving the printing to China (10%). “Overall popularity of features” shows that 93% of respondents said they would buy the version of the book for which they opted, at an average price of £13.77. The most popular features overall are a donation to Alzheimer’s Society (89%) and the audio version (86%).

Written (qualitative) comments from participants

Those who say they would buy the books provided useful comments. Some highlighting the value of such a product, some suggesting improvements and others simply demonstrating their enthusiasm.

Those who say they would not buy the book either could not see its value, have different approaches to book purchasing or no longer have a reason to buy such a book.