Design A/B Test for Subscription Price Increase Effectiveness
Company: Google
Role: Data Scientist
Category: Analytics & Experimentation
Difficulty: medium
Interview Round: Onsite
##### Scenario
B2B SaaS company considering raising subscription prices.
2) Website sign-up funnel exploring button color and placement changes.
##### Question
Your PM asks for a two-week A/B test to evaluate a subscription price increase. How would you design the experiment? Should pricing be A/B-tested at all, and how would you decide if the new price is beneficial?
A sign-up page currently shows a red button at the top. The team wants to test red vs blue and top vs bottom to lift click-through. How would you structure and analyze this multivariate test?
##### Hints
Discuss metrics (conversion, LTV, churn), sample-size, test length, randomization, interaction effects, user cross-bucket risk, and alternative before-after designs.
Quick Answer: This question evaluates competency in experimental design, statistical reasoning, and product analytics focused on pricing experiments and multivariate UI tests for sign-up funnels.