Price Sensitivity Meter

A pricing technique that utilizes four questions to derive consumer preferences data.

Deeper Insights

This pricing method was developed by Peter Van Westendorp, who used four simple questions to gather data about a particular target segment.

- At what price would you consider the product to be so expensive that you would not consider buying it? (Too expensive)

- At what price would you consider the product to be priced so low that you would feel the quality couldn’t be very good? (Too cheap)

- At what price would you consider the product starting to get expensive, so that it is not out of the question, but you would have to give some thought to buying it? (Expensive/High Side)

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

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Related Keywords: Value Metric, Perceived Value, Peter Van Westendorp, Value-Based Pricing