Increasing Prices Without
Compromising Access
Research Division
Population Services International
Social Marketing and Communications for Health
South Africa, Sexually Active Males 16-35, Willingness to Pay
100.0
80.0
% W2Pay
60.0
40.0
Trust $0.13 per
condom
20.0
Lovers Plus
$0.27per condom
2
.0
.0
20
19
.0
18
.0
.0
.0
17
16
15
.0
0
9.
14
0
8.
.0
0
7.
.0
0
6.
13
0
5.
Price
12
0
4.
.0
0
3.
11
0
2.
.0
0
1.
10
0
0.
0.0
Expected Lovers Plus Revenue by Price (Condoms)
$6,000,000
$5,000,000
Revenu
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
0
5
10
15
20
Price
3
25
30
35
40
South Africa, Males 16-35, Willingness to Pay by Socio-economic Status
100.0
80.0
Total
60.0
% W2Pay
SES A&B
SES C&D
SES E
Fitted SES A&B
Fitted Total
Fitted SES E
40.0
Fitted SES C&D
Trust
$0.13 per
condom
20.0
Lovers Plus $0.27
per condom
4
.0
.0
20
19
.0
18
.0
17
.0
16
.0
15
.0
0
9.
.0
0
8.
14
0
7.
.0
0
6.
13
0
5.
.0
0
4.
Price
12
0
3.
.0
0
2.
11
0
1.
10
0
0.
0.0
Willingness to Pay by Motivation
100
90
80
70
60
Low
Med
High
50
Poly. (Med)
Poly. (Low)
Poly. (High)
40
30
20
10
5
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
0
Willingness to Pay by Availability
100
90
80
70
60
Low
%
Med
High
50
Poly. (High)
Poly. (Med)
Poly. (Low)
40
30
20
10
Price
6
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
0
TOTAL MARKET APPROACH
Decision-Making
 Perspective: Program
 Scope: Public, Social Marketing and
Commercial Sector
 Objective: Effectiveness and Efficiency
(Increasing Prices without Compromising
Access)
 Tool: Segmentation
7
PSI Segmentation Process: Step 1
No/Low Risk
Risk/High Risk
Population of South Africa
8
Willingness to Pay by Risk
100
90
80
70
% WTP
60
Risk 1
Risk 2
Risk 3
50
Poly. (Risk 2)
Poly. (Risk 1)
Poly. (Risk 3)
40
30
20
10
Price
9
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
0
No/Low Risk
Risk/High Risk
PSI Segmentation Process: Step 2
10
Population of South Africa
Practice Desired Behavior
Do Not Practice
Willingness to pay by behavior
100
90
80
70
% WTP
60
Ever use
Use at last sex
Consistent use
50
Poly. (Consistent use)
Poly. (Use at last sex)
Poly. (Ever use)
40
30
20
10
Price
11
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
0
No/Low Risk
Risk/High Risk
PSI Segmentation Process: Step 3
12
Population of South Africa
Practice Desired Behavior
Do Not Practice
Comparison Based on Behavior Change Theory
Risk/High Risk
PSI Segmentation Process: Step 3
Population of South Africa
Practice Desired Behavior
Do Not Practice
•Higher perceived availability
•Branding is more important
•Higher self-efficacy
•Higher risk perception
•More motivated to practice all
preventive behaviors
•Higher Willingness to Pay
No/Low Risk
•Wealthier
13
PSI Segmentation Process: Step 4
No/Low Risk
Risk/High Risk
Population of South Africa
Practice Desired Behavior
14
Commercial vs Social Marketing
Public Sector vs Social Marketing
•Lower perceived availability
•Brand attributes less important
•Brand attributes less important
•More modern social norms
•More modern social norms
•Lower levels of motivation
SM
•Higher Willingness to Pay
•Lower Willingness to Pay
•Older (but not wealthier)
•Younger and poorer
Practice Desired Behavior
•Behaver vs Non-Behaver
•Higher perceived availability
•Branding is more important
•Higher self-efficacy
Risk/High Risk
•Higher risk perception
•More motivated to practice all preventive behaviors
•Higher Willingness to Pay
•Wealthier
Commercial vs Social Marketing
Public Sector vs Social Marketing
•Lower perceived availability
•Brand attributes less important
•Brand attributes less important
•More modern social norms
•More modern social norms
•Lower levels of motivation
15
•Higher Willingness to Pay
•Lower Willingness to Pay
•Older (but not wealthier)
•Younger and poorer
Do Not Practice
Analysis
Effectiveness
Willingness
to Pay
16
Other
Barriers
Efficiency
Commercial Users
Willingness
Other
to Pay
Barriers
Public Sector
Willingness
Other
to Pay
Barriers
Social Marketing Action
Price
3Ps
Impact on Stakeholders
SM
Program
Efficiency
Efficiency
Users
1
---
***
---/***
***
---/***
increase
↑
↑
2
---
***
---/***
---
---/***
increase
↑
↑
3
---
---
***
---
***
increase
4
---
---
***
***
***
increase
5
---
---
---
***
---
6
---
---
---
---
---
7
***
***
---/***
---
---
increase?
8
***
***
---/***
***
---/***
no change
9
***
***
---/***
---
***
no change
10
***
---
***
decrease
11
***
---
---
conditional
required
↑
wind up -switch to CS crowding out
wind up -crowding
out
switch to CS
switch to CS
↑
↑
↑
switch to PS
↑
↔
switch to PS
↑
↔
switch to SM
↔
↔
target NU switch to SM
target NU &
PS
switch to SM
↓
↔
↓
wind up -crowding out
↓
required
no change
A
***
***
***
B
***
***
--
C
***
---
***
D
***
---
--
E
---
***
***
no change
no change
F
---
***
--
target PS
switch to SM
G
---
---
***
decrease
decrease
switch to SM
↑
For More Information
Steven Chapman
[email protected]
www.psi.org
17