The Van Westendorp Price Sensitivity Meter

The Van Westendorp Price Sensitivity Meter is a method used by businesses to determine the ideal price for their product or service. It involves asking potential customers four questions about how they perceive different prices: at what price they consider it too cheap, a good value, getting too expensive, and so expensive that they wouldn’t buy. By analyzing these responses, businesses can identify a price range that maximizes customer acceptance and profitability, helping them set a competitive but profitable price point that aligns with customer perceptions and willingness to pay.