The price range for a product or service. If the price is set too high, consumers will not buy the product. At the same time, the price must not be too low, otherwise the quality will be question. In order to increase sales figures and profits, the therefore imperative. How does the van westendorp method work? You don’t ne much to carry out the van westendorp price analysis . Essentially, the method is bas on four price perception questions that can be includ in a market research questionnaire : at what price would the product or service be so expensive that you would not buy it at all? At what price would you consider the product expensive, but would you still buy it? At what price would the product be cheap A good offer.
Search for the optimal price point is
At what price would the product be so cheap that you doubt the quality and don’t buy it? A survey according to van westendorp not only determines the Uganda WhatsApp Number List willingness to pay, but also the price at which doubts arise as to the seriousness of the offer. A particularly low price can suggest inferior quality and thus act as a deterrent. is also quite uncomplicat with the van westendorp method . The results of the survey are present in a graph: price analysis using the van westendorp method the x-axis shows the different price levels for the product, while the y-axis shows the percentage of consumers who decid on each price. This creates four different graphs that cross each other four times. The intersection points are to.
Evaluation and presentation the evaluation
Interpret as follows: optimal price point (opp): the optimal price lies at the intersection between the Too expensive and Too cheap curves. The Marketing List price resistance is lowest here, since exactly the same number of people perceive the price as either Too expensive or Too cheap. ratio is most balanc at the indifference point. Exactly the same number of respondents see the product or service as Expensive or Cheap. In addition, the acceptable price range can be determin using the van westendorp method bas on two other price points. The price of a product or service should be within this range in order for it to be accept by customers. The threshold to the relatively expensive (Point of marginal expensiveness) represents the upper price limit and lies exactly at the intersection of the Not.