What’s included:<\/strong><\/h4>\r\n\r\n\r\n\r\n\r\n- The price sensitivity meter<\/a><\/li>\r\n
- Four main questions of the model<\/a><\/li>\r\n
- Price sensitivity meter results<\/a><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n
The price sensitivity meter<\/strong><\/h2>\r\n\r\n\r\n\r\nDeveloped by Dutch economist Peter van Westendorp in the 1970s, it is a widely respected method for gauging consumer price sensitivity. Cimigo applies this simple price sensitivity meter to determine the acceptable price range and the optimal price for a particular product or service. Start using our price sensitivity solution by clicking here<\/a>.<\/p>\r\n\r\n\r\n\r\nFour main questions of the model<\/strong><\/h2>\r\n\r\n\r\n\r\nIn the price sensitivity survey, consumers are asked at which price the brand being tested is:<\/p>\r\n\r\n\r\n\r\n
\r\n- Too expensive:<\/strong> At what price do you perceive the product as too expensive to the point where you would not consider this product?<\/li>\r\n
- Too cheap:<\/strong> At what price do you perceive the product as too cheap to the point where you would feel that the quality cannot be very good?<\/li>\r\n
- Expensive:<\/strong> At what price do you perceive the product is getting expensive, but you would still consider buying it?<\/li>\r\n
- Cheap:<\/strong> At what price do you perceive the product to be a cheap – a great buy for the money?<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n
Price sensitivity meter results<\/strong><\/h2>\r\n\r\n\r\n\r\nIn this example, the optimal price is 38,500 \u20ab. The acceptable range is from 29,723 \u20ab to 49,080 \u20ab. Beyond this range, too much demand is lost.<\/p>\r\n\r\n
<\/p>\r\n
![\"Cimigo](\"https:\/\/www.cimigo.com\/wp-content\/uploads\/2023\/10\/Cimigo-RapidSurvey-price-sensitivity-metre-PSM-example-1024x573.png\" "\\"cimigo-feature-image\\"")
<\/p>\r\n\r\n
The graph consists of four lines, with each representing one of the four main questions. The x-axis shows the price points, while the y-axis shows the proportion of respondents who chose each price point.<\/p>\r\n\r\n\r\n\r\n
When these lines intersect, four pricing points are formed as below:<\/p>\r\n\r\n\r\n\r\n
Optimal price point:<\/strong> Intersection of \u201ctoo cheap\u201d and \u201ctoo expensive\u201d lines, where customers feel that is the best price for them and they are most willing to buy.<\/p>\r\n\r\n\r\n\r\nExpected price point: <\/strong>Intersection of \u201ccheap\u201d and \u201cexpensive\u201d lines, where customers expect that the price should be.<\/p>\r\n\r\n\r\n\r\nLow price <\/strong>point: <\/strong>Intersection of \u201ctoo cheap\u201d and \u201cexpensive\u201d lines, where the product is perceived to lack quality relative to the price.<\/p>\r\n\r\n\r\n\r\nHigh price <\/strong>point:<\/strong> Intersection of \u201ccheap\u201d and \u201ctoo expensive\u201d lines, where the price outweighs the benefit.<\/p>\r\n\r\n\r\n\r\nThe range between the low price and the high price is the acceptable price range<\/strong>.<\/p>\r\n\r\n\r\n\r\n
The price sensitivity meter<\/strong><\/h2>\r\n\r\n\r\n\r\nDeveloped by Dutch economist Peter van Westendorp in the 1970s, it is a widely respected method for gauging consumer price sensitivity. Cimigo applies this simple price sensitivity meter to determine the acceptable price range and the optimal price for a particular product or service. Start using our price sensitivity solution by clicking here<\/a>.<\/p>\r\n\r\n\r\n\r\nFour main questions of the model<\/strong><\/h2>\r\n\r\n\r\n\r\nIn the price sensitivity survey, consumers are asked at which price the brand being tested is:<\/p>\r\n\r\n\r\n\r\n
\r\n- Too expensive:<\/strong> At what price do you perceive the product as too expensive to the point where you would not consider this product?<\/li>\r\n
- Too cheap:<\/strong> At what price do you perceive the product as too cheap to the point where you would feel that the quality cannot be very good?<\/li>\r\n
- Expensive:<\/strong> At what price do you perceive the product is getting expensive, but you would still consider buying it?<\/li>\r\n
- Cheap:<\/strong> At what price do you perceive the product to be a cheap – a great buy for the money?<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n
Price sensitivity meter results<\/strong><\/h2>\r\n\r\n\r\n\r\nIn this example, the optimal price is 38,500 \u20ab. The acceptable range is from 29,723 \u20ab to 49,080 \u20ab. Beyond this range, too much demand is lost.<\/p>\r\n\r\n
<\/p>\r\n
<\/p>\r\n\r\n
The graph consists of four lines, with each representing one of the four main questions. The x-axis shows the price points, while the y-axis shows the proportion of respondents who chose each price point.<\/p>\r\n\r\n\r\n\r\n
When these lines intersect, four pricing points are formed as below:<\/p>\r\n\r\n\r\n\r\n
Optimal price point:<\/strong> Intersection of \u201ctoo cheap\u201d and \u201ctoo expensive\u201d lines, where customers feel that is the best price for them and they are most willing to buy.<\/p>\r\n\r\n\r\n\r\nExpected price point: <\/strong>Intersection of \u201ccheap\u201d and \u201cexpensive\u201d lines, where customers expect that the price should be.<\/p>\r\n\r\n\r\n\r\nLow price <\/strong>point: <\/strong>Intersection of \u201ctoo cheap\u201d and \u201cexpensive\u201d lines, where the product is perceived to lack quality relative to the price.<\/p>\r\n\r\n\r\n\r\nHigh price <\/strong>point:<\/strong> Intersection of \u201ccheap\u201d and \u201ctoo expensive\u201d lines, where the price outweighs the benefit.<\/p>\r\n\r\n\r\n\r\nThe range between the low price and the high price is the acceptable price range<\/strong>.<\/p>\r\n\r\n\r\n\r\n
Four main questions of the model<\/strong><\/h2>\r\n\r\n\r\n\r\nIn the price sensitivity survey, consumers are asked at which price the brand being tested is:<\/p>\r\n\r\n\r\n\r\n
\r\n- Too expensive:<\/strong> At what price do you perceive the product as too expensive to the point where you would not consider this product?<\/li>\r\n
- Too cheap:<\/strong> At what price do you perceive the product as too cheap to the point where you would feel that the quality cannot be very good?<\/li>\r\n
- Expensive:<\/strong> At what price do you perceive the product is getting expensive, but you would still consider buying it?<\/li>\r\n
- Cheap:<\/strong> At what price do you perceive the product to be a cheap – a great buy for the money?<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n
Price sensitivity meter results<\/strong><\/h2>\r\n\r\n\r\n\r\nIn this example, the optimal price is 38,500 \u20ab. The acceptable range is from 29,723 \u20ab to 49,080 \u20ab. Beyond this range, too much demand is lost.<\/p>\r\n\r\n
<\/p>\r\n
<\/p>\r\n\r\n
The graph consists of four lines, with each representing one of the four main questions. The x-axis shows the price points, while the y-axis shows the proportion of respondents who chose each price point.<\/p>\r\n\r\n\r\n\r\n
When these lines intersect, four pricing points are formed as below:<\/p>\r\n\r\n\r\n\r\n
Optimal price point:<\/strong> Intersection of \u201ctoo cheap\u201d and \u201ctoo expensive\u201d lines, where customers feel that is the best price for them and they are most willing to buy.<\/p>\r\n\r\n\r\n\r\nExpected price point: <\/strong>Intersection of \u201ccheap\u201d and \u201cexpensive\u201d lines, where customers expect that the price should be.<\/p>\r\n\r\n\r\n\r\nLow price <\/strong>point: <\/strong>Intersection of \u201ctoo cheap\u201d and \u201cexpensive\u201d lines, where the product is perceived to lack quality relative to the price.<\/p>\r\n\r\n\r\n\r\nHigh price <\/strong>point:<\/strong> Intersection of \u201ccheap\u201d and \u201ctoo expensive\u201d lines, where the price outweighs the benefit.<\/p>\r\n\r\n\r\n\r\nThe range between the low price and the high price is the acceptable price range<\/strong>.<\/p>\r\n\r\n\r\n\r\n
Price sensitivity meter results<\/strong><\/h2>\r\n\r\n\r\n\r\nIn this example, the optimal price is 38,500 \u20ab. The acceptable range is from 29,723 \u20ab to 49,080 \u20ab. Beyond this range, too much demand is lost.<\/p>\r\n\r\n
<\/p>\r\n
<\/p>\r\n\r\n
The graph consists of four lines, with each representing one of the four main questions. The x-axis shows the price points, while the y-axis shows the proportion of respondents who chose each price point.<\/p>\r\n\r\n\r\n\r\n
When these lines intersect, four pricing points are formed as below:<\/p>\r\n\r\n\r\n\r\n
Optimal price point:<\/strong> Intersection of \u201ctoo cheap\u201d and \u201ctoo expensive\u201d lines, where customers feel that is the best price for them and they are most willing to buy.<\/p>\r\n\r\n\r\n\r\nExpected price point: <\/strong>Intersection of \u201ccheap\u201d and \u201cexpensive\u201d lines, where customers expect that the price should be.<\/p>\r\n\r\n\r\n\r\nLow price <\/strong>point: <\/strong>Intersection of \u201ctoo cheap\u201d and \u201cexpensive\u201d lines, where the product is perceived to lack quality relative to the price.<\/p>\r\n\r\n\r\n\r\nHigh price <\/strong>point:<\/strong> Intersection of \u201ccheap\u201d and \u201ctoo expensive\u201d lines, where the price outweighs the benefit.<\/p>\r\n\r\n\r\n\r\nThe range between the low price and the high price is the acceptable price range<\/strong>.<\/p>\r\n\r\n\r\n\r\n
<\/p>\r\n\r\nExpected price point: <\/strong>Intersection of \u201ccheap\u201d and \u201cexpensive\u201d lines, where customers expect that the price should be.<\/p>\r\n\r\n\r\n\r\n Low price <\/strong>point: <\/strong>Intersection of \u201ctoo cheap\u201d and \u201cexpensive\u201d lines, where the product is perceived to lack quality relative to the price.<\/p>\r\n\r\n\r\n\r\n High price <\/strong>point:<\/strong> Intersection of \u201ccheap\u201d and \u201ctoo expensive\u201d lines, where the price outweighs the benefit.<\/p>\r\n\r\n\r\n\r\n The range between the low price and the high price is the acceptable price range<\/strong>.<\/p>\r\n\r\n\r\n\r\n