{"id":20789,"date":"2016-05-16T16:40:57","date_gmt":"2016-05-16T23:40:57","guid":{"rendered":"http:\/\/www.questionpro.com\/blog\/?p=20789"},"modified":"2023-07-05T06:33:15","modified_gmt":"2023-07-05T06:33:15","slug":"van-westendorp-price-sensitivity-meter","status":"publish","type":"post","link":"https:\/\/www.questionpro.com\/blog\/van-westendorp-price-sensitivity-meter\/","title":{"rendered":"Van Westendorp Price Sensitivity Meter"},"content":{"rendered":"

The Van Westendorp price sensitivity<\/a> meter is defined as a technique for market researchers to gauge consumer perceptions of the value of products or services. It usually means asking four specific questions to help uncover the best price for the product.<\/span><\/p>\n

The inventor of this pricing analysis approach was a Dutch economist Peter Van Westendorp. The Van Westendorp survey questions help organizations avoid scaring potential customers away by a large price tag. On the other hand, a low price tag will leave them skeptical of the product\u2019s quality. The goal of the Van Westendorp Price Sensitivity Meter is to maximize the profit that is generated from a certain product or service.<\/span><\/p>\n

Gather research insights<\/strong><\/a><\/p>\n

The four standard Van Westendorp questions to measure price sensitivity<\/b><\/h3>\n

To get the most appropriate answers to price out the product or service, you need to first ask the correct questions. The Van Westendorp survey questions are as follows:<\/span><\/p>\n

Q1.<\/b> At what price would you consider the product to be too expensive that you would consider not buying it? (Too expensive)<\/span><\/p>\n

Q2.<\/b> At what price would you consider the product to be priced too low and because of it you would feel that the quality of the product or service is poor? (Too cheap)<\/span><\/p>\n

Q3.<\/b> At what price would you consider the product becoming too expensive \u2013\u00a0 so that it is not out of the question, but you would have to give some thought to buying it? (Expensive\/High Side)<\/span><\/p>\n

Q4.<\/b> At what price would you consider the product to be a bargain\u2014a great buy for the money? (Cheap\/Good Value)<\/span><\/p>\n

The Van Westendorp Price Sensitivity Meter questions have remained virtually unchanged over the years. and have helped multinationals and small businesses alike to measure price sensitivity and to set up successful pricing strategies. From a bag of Lay\u2019s chips to Apple\u2019s iPhone, Van Westendorp\u2019s price sensitivity measurement surveys have influenced decision-making.<\/span><\/p>\n

LEARN ABOUT:<\/strong> Pricing Research<\/a><\/p>\n

The price sensitivity meter satisfies the question of how to do a pricing analysis and marketers can implement it for both, new, and existing products. You can give the respondent price options for each question type to know whether the price is right or leave it open-ended.<\/span><\/p>\n

\"Van<\/p>\n

How to use the Van Westendorp Model for pricing research<\/b><\/h3>\n

Organizations tasked with making a profit operate under a strategy that is dependent upon multiple factors including market share; volatility; brand position; and the current state of the economy. The primary goal here is to maximize the profit generated by the firm. Understanding your current (and prospective) markets\u2019 view on pricing is a key driver revenue and profit margin.<\/span><\/p>\n

Use the Van Westendorp pricing study to conduct pricing analysis and determine the following price points:<\/span><\/p>\n