Price Sensitivity Analysis

Van WestendorpPrice Sensitivity Meter

Apply the classic Van Westendorp Price Sensitivity Meter to determine acceptable price ranges, optimal pricing points, and value perception thresholds through four critical price questions.

Methodology Overview

Classic Price Sensitivity Measurement

The Van Westendorp Price Sensitivity Meter is a proven methodology that identifies acceptable price ranges by asking customers four key questions about price perception, revealing optimal price points and value thresholds that guide strategic pricing decisions.

Four Critical Questions

Uses four standardized questions to capture price perceptions: too expensive, expensive but worth it, cheap but questionable, and too cheap to be good.

Optimal Price Range

Identifies the range of acceptable prices where the product is neither too expensive nor too cheap, revealing the optimal pricing window.

PSM Analysis Impact

Price Insights
92%

Range Accuracy

24%

Price Optimization

22K+

Price Perceptions

165+

PSM Studies

Price Sensitivity Clarity91%
Core Methodology

The Four Critical Price Questions

Van Westendorp's methodology centers on four key questions that reveal different aspects of price perception and value assessment across your target market.

Too Expensive

"At what price would you consider this product to be so expensive that you would not consider buying it?"

Identifies the upper price threshold where customer resistance becomes prohibitive and purchase intention drops significantly.

Expensive but Worth It

"At what price would you consider this product expensive, but still worth buying?"

Captures the price point where customers perceive high value despite recognizing the premium pricing compared to alternatives.

Cheap but Questionable

"At what price would you consider this product a bargain but question its quality?"

Reveals the lower price threshold where customers begin to question quality and value, potentially damaging brand perception.

Too Cheap

"At what price would you consider this product so inexpensive that you would question its quality and not buy it?"

Identifies the absolute lower bound where low pricing signals poor quality and eliminates purchase consideration entirely.

Strategic Applications

Van Westendorp Use Cases

The Price Sensitivity Meter provides valuable insights for pricing strategy, market positioning, and competitive analysis across diverse business scenarios.

Optimal Pricing

Identify the optimal price point that maximizes acceptance while avoiding both overpricing and quality perception issues.

Acceptable price range
Optimal price point
Value perception balance

New Product Launch

Determine appropriate pricing for new products by understanding customer price expectations and value perceptions.

Launch pricing strategy
Market acceptance testing
Value positioning

Brand Positioning

Align pricing with brand positioning strategy by understanding how price perceptions affect brand image and market positioning.

Premium positioning
Value positioning
Quality perception

Market Research

Conduct comprehensive market research to understand price sensitivity patterns across different customer segments and markets.

Segment analysis
Market comparison
Trend identification

Price Adjustment

Evaluate the impact of potential price changes on customer acceptance and market position before implementing adjustments.

Price increase testing
Discount strategies
Competitive responses

Quality Perception

Understand how pricing affects quality perception and brand image to optimize the price-quality relationship.

Quality signals
Value communication
Brand integrity
Our PSM Process

Systematic Price Sensitivity Analysis

Our rigorous approach to Van Westendorp analysis ensures accurate price sensitivity measurement and actionable insights for strategic pricing decisions.

1

Study Design

Design comprehensive price sensitivity research including sample selection, question customization, and methodology optimization for your market.

Sample strategy
Question adaptation
Context optimization
2

Data Collection

Execute Van Westendorp questioning with quality controls and validation to ensure accurate price perception measurement across your target market.

Four-question protocol
Quality validation
Response verification
3

Strategic Analysis

Analyze price sensitivity curves and intersection points to generate actionable pricing recommendations and strategic insights.

Curve analysis
Optimal point identification
Strategic recommendations

Ready to Understand Your Price Sensitivity?

Partner with PROOF Insights to leverage Van Westendorp Price Sensitivity Meter for clear insights into optimal pricing, acceptable ranges, and value perception thresholds.