Van Westendorp PSM Question
Van Westendorp PSM (Price Sensitivity Meter) Model is a research method that helps businesses determine how price sensitive their customers are. It involves asking customers several questions about their willingness to purchase a product or service at different price points. These questions aim to identify the price range that customers consider acceptable and the maximum price they would be willing to pay for the product or service. View a PSM example.
Creating a PSM Question
1. Choose PSM to add the question to your survey.
2. Enter the question.
3. (Optional) Edit the row questions. The order of the row questions should from the cheapest price to the most expensive price.
4. Customize the following price scales: Lowest price, Price intervals, and number of prices.
5. (Optional) Adjust any additional settings for questions.
6. Click Finish.
Analyzing the Data
When you click on the PSM Report, you can view four price points:
- Best Price: This is where “Too expensive” and “Too cheap” curves intersect.
- Acceptable Price: This is where “Cost effective” and “High price” curves intersect.
- Maximum Price Point: This is where “Cost effective” and “Too expensive” curves intersect.
- Minimum Price Point: This is where “Too cheap” and “High price” curves intersect.
