Price Sensitivity Study
Pricing is one of the highest-stakes decisions a product team makes, and it's too often made on gut feel or a competitor's sticker price. Our Price Sensitivity Study uses the Van Westendorp Price Sensitivity Meter (PSM) to put a defensible, demand-based number under that decision — mapping the full range of prices your market will accept and the point where willingness to pay peaks.
Tell us the question. We'll recommend the method, scope the work, and quote it in writing.
Scope a price sensitivity studyThe business case.
Set the price too high and you suppress trial; too low and you leave margin on the table and signal low quality. The PSM reveals the psychological price thresholds your customers actually hold — the Point of Marginal Cheapness, the Point of Marginal Expensiveness, the Indifference Price, and the Optimal Price Point — so you launch inside the band the market has already told you it will accept.
How we run it.
We field a survey built around the four classic Van Westendorp questions — too cheap, a bargain, getting expensive, too expensive — against a screened, representative sample, and often pair it with qualitative work to explain the 'why' behind the curves. For Trufacial, a skincare brand preparing to bring a new treatment to market, we combined focus groups with a Van Westendorp survey to identify the acceptable price range and the optimal price point ahead of launch. Deliverables include the full set of intersecting price curves, the acceptable range and optimal point, and a clear pricing recommendation in plain English.
What you can expect.
- The acceptable price range and the optimal price point, backed by demand data
- The 'too cheap' and 'too expensive' thresholds that bound your pricing
- Van Westendorp curves segmented by audience where the sample supports it
- A defensible, launch-ready pricing recommendation — not a guess