Price Sensitivity Study

Price Sensitivity

Category: Price Sensitivity Study.

Objective: To estimate the potential of Metro and the appropriate fares.

Methodology: Face to face interviews.Face to face structured Interview.

Target group: Respondents living or working around proposed metro stations and commuting daily through public/private transport.


The state transport authority always takes care of different public transportation. In the recent time, due to ever increasing metropolis traffic volumes on the roads, the need of an alternative transportation system was felt, hence the State Government decided to implement the Metro Rail in the city. The Metro aims at providing the people with a fast, reliable, convenient, efficient, modern and economical mode of public transport, which is properly integrated with other forms of public and private transport including buses.

Challenges …

o Metro was launched to facilitate the commuters in order to abate issues caused by the heavy road traffic.
o They wanted to check the willingness of the commuters to travel by Metro by paying higher fare if value added services would be provided.
o Along with fare, commuters travelling habits were also required to be understood.

Our approach…

Face to face structured interviews were conducted with residents of the city around 32 location covered which were proposed by the Metro rail.


o The current travel habits of the commuter in terms of time spent in travelling, major stops, expenditure, mode of transport and the purpose of travel were indentified which may help the client to decide upon the frequency required for the Metro rail.
o Travel habits revealed the reason for preferring particular mode of transport over others.
o The scratchy elements of the current transportation system which a commuter faced were indentified.
o The pain areas of the transportation may help the client in designing promotion strategy to woo the commuters for Metro.