6.1

Van Westendorp PSM

A four-question survey technique that derives an acceptable price range from judgements of too expensive, expensive, cheap and suspiciously cheap.

Peter H. van Westendorp, ESOMAR Congress, Venice (1976)

What it does

Four questions produce an acceptable price range: too expensive, expensive, cheap, suspiciously cheap. Fast and cheap to run.

When it breaks

Measures stated intention, not behaviour; systematically inflates the upper bound; ignores competitor prices and context. It gives you a range, never a price.

Case

Kloss and Kunter tested the PSM against directly measured willingness-to-pay on a real confectionery product. The optimal price point tracked WTP reasonably, but the technique produced no purchase-probability estimate, confirming it bounds a range rather than predicting demand. Published PSM cases with hard commercial numbers are scarce; the work is nearly all proprietary.

Kloss & Kunter · PSM as a WTP measure ↗
Price → Respondents % Too cheap Cheap Expensive Too expensive Acceptable range Known upward bias
Van Westendorp PSM · 6.1

In the wild

Unchecked · not part of the tier

What people have written about this tool in the last twelve months. A machine found these and nobody has read them. Everything above this line was checked by hand.

    Loading…