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Van Westendorp Price Sensitivity Guide

The document discusses the Van Westendorp price sensitivity meter, which is a survey tool used to determine customers' price sensitivity. It involves asking customers four questions about the price levels at which a product would be considered too cheap, a good bargain, expensive but still worth considering, and too expensive to purchase. The questions help identify price floor and ceiling points as well as an optimal bargain price range. Conducting this type of survey provides valuable customer insights around price points and sensitivity that can inform pricing strategy.

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Aditya Srivastava
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2K views3 pages

Van Westendorp Price Sensitivity Guide

The document discusses the Van Westendorp price sensitivity meter, which is a survey tool used to determine customers' price sensitivity. It involves asking customers four questions about the price levels at which a product would be considered too cheap, a good bargain, expensive but still worth considering, and too expensive to purchase. The questions help identify price floor and ceiling points as well as an optimal bargain price range. Conducting this type of survey provides valuable customer insights around price points and sensitivity that can inform pricing strategy.

Uploaded by

Aditya Srivastava
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

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Required Assignment 9.2:


Creating the Van Westendorp Price Sensitivity Meter

The four questions asked in the Van Westendorp price sensitivity meter are:

Q1. At what price would you consider the product/service to be priced so low that you feel that the
quality can't be very good? (Too Cheap)

For any specific product - even those that are already low price - customers
usually hold a floor price,or lowest acceptable price, in their mind. Drop your
price below this level, and customers' suspicions about the quality of your
product will be piqued. This first question will help you identify the price at
which customers think your product is too cheap.

Q2: At what price would you consider this product/service to be a bargain—a great buy for the
money? (Cheap/Good Value)

Everyone loves a bargain. And, some customers are more deal-prone than
others. This question
helps you to pinpoint the price at which your customers believe they're
getting a great deal. This is
invaluable information, and if you're already tracking competitors' prices, it
can help you gain a price
advantage over rival's products.

Q3: At what price would you say this product/service is starting to get expensive—it's not out of the
question, but you'd have to give some thought to buying it? (Expensive/High Side)

This question helps you identify upper price points which are still viable - but
which might need to
be accompanied by careful advertising and other promotional techniques to
convert interest
into sales.

Q4: At what price would you consider the product/service to be so expensive that you would not
consider buying it? (Too Expensive)

The final question in the Van Westendorp price sensitivity survey is designed
to help you discover
the ceiling price for your product - the price above which sales are likely to
drastically fall of

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Sample Survey:
Product: Sample from professor

This study source was downloaded by 100000857814011 from [Link] on 04-19-2023 [Link] GMT -05:00

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This study source was downloaded by 100000857814011 from [Link] on 04-19-2023 [Link] GMT -05:00

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