Brand-Price Trade-off

Also known as: BPTO, Brand Price Trade Off, Brand Premium

Pricing methodology measuring how much price premium consumers will pay for a brand versus equivalent alternatives.

Brand-Price Trade-off (BPTO) is a pricing research methodology that specifically measures the monetary value consumers attribute to a brand compared to competing alternatives. It exposes respondents to purchase decisions where known brands compete at variable prices, simulating the real context of the point of sale.

Unlike Van Westendorp or Gabor-Granger (which evaluate price in isolation), BPTO measures price in the competitive context, making it more relevant for strategic pricing decisions.

The key result of BPTO is the 'brand premium': how much more a brand can charge above the competitor's reference price before losing market share.