How to price your brand: Van Westendorp Price Sensitivity Model.
Understanding the relationship between branding and pricing is of utmost importance in today’s competitive marketplace. That’s why we have developed a user-friendly tool that allows businesses to create Van Westendorp Pricing charts to gain valuable insights into consumer price preferences.
The Van Westendorp PSM is a proven market research technique that helps businesses determine the optimal pricing for their products or services. By asking respondents a series of questions about price perceptions, we are able to identify key price points that play a crucial role in consumer decision-making. The first key point is the Point of Marginal Cheapness (A). This is the price at which consumers start questioning the quality of a product due to its low cost. Understanding this price threshold is essential to avoid undercutting your brand’s value.
On the other end of the spectrum, we have the Point of Marginal Expensiveness (B). This is the price point at which consumers believe the product is too expensive to justify a purchase. Knowing this threshold is critical in avoiding pricing your product out of reach for potential customers.
Next, we have the Point of Optimal Expensiveness (C). This is the price that consumers deem fair and represents a good value for your product. By determining this price point, we can ensure that your pricing strategy aligns with consumer expectations, fostering positive perceptions of your brand.
Lastly, we have the Indifference Price Point. This is the price at which consumers are neither motivated to purchase nor deterred from buying your product. By identifying this price point, we can help you strike the right balance between maximising sales and maintaining profitability.
Through our survey platforms, we gather and analyse responses to provide you with a comprehensive range of acceptable prices. Going further if we have strongly defined segments defined by cluster analysis we can understand differences in how much each segment is willing to pay. Ultimately, this allows you to make informed decisions when setting your product prices, leading to increased sales and enhanced customer satisfaction.
At Fluid Branding, we combine our years of experience and training with the Van Westendorp PSM technique to deliver measurable improvements to your bottom line. Our goal is to provide you with the essential tools and strategies needed to succeed in the ever-evolving world of branding.
Contact Fluid Branding to learn more about our survey platforms with Van Westendorp PSM capability and start harnessing the power of consumer price preferences to drive your business forward.