So… I’ve given up waiting for responses and have decided to end the “study”. Here are the results.
Gym: $22.95 average Massage: $12.81 average
Gym importance: 7.67 average Massage Importance: 2.75 average
Null Hypothesis: Gym average = Massage average
Alternative Hypothesis: Gym Average>Massage average
P- Value: .015- Reject null. Convincing evidence that respondents tolerate greater price increase for gym -> higher JND
I used a 2 sample t test for difference in mean. The sample size ended up only being 12, but the distributions didn’t have any outliers or strong skew so I did the test anyways.
Obviously, the “study” was full of holes (hence the quotations). Also, I realized that I was measuring Differential price response threshold (the point at which respondents would react to a change) as opposed to differential price perceptual threshold, so there’s probably a gap between perceived price increase and the point at which the increase is intolerable (ie switching gym/parlour). However, both are JND
Another insight: Price elasticity of products differ based on perceived value.
However, given the huge difference in average perceived difference, I was kind of expecting a larger gap in price tolerance
I’m probably stating the obvious, but it was really cool for me to see this played ou “in the real world”
@ActivitiesGuy You’re in stats and econ, any insights?