Automated Expert Systems for Consumer Research
Superior Pricing Insight
The Van Westendorp analysis defines 4 price points: IDP (indifference
price point);
OPP (optimum price point; MCP (marginal cheap price); and MEP
(marginal expensive
price). The range between the MCP and the MEP is considered the
range of acceptable
prices for the product. The IDP is defined by the point where
the number of respondents
who regard the price as cheap is equal to the number who regard
it as too expensive.
This price point is interpreted as the price of a market leader
or a common marketplace
price. The OPP is the price at which the number of consumers who
see the price as
too cheap equals the number that see it as too expensive and is
often a “recommended”
price.
Linescale analysis of Van Westendorp input by Satisfaction
Segment refines pricing
insight by focusing only on relevant customers. There are no
“hard and fast” rules
equating van Westendorp to an elasticity curve however,
Linescale experience has
shown there is often a “too
expensive” inflection point among Acceptors that
indicates
the concept’s top price.
This is superior pricing insight.
Contact: Please feel free to Contact Us if you
would like to understand
more about how Linescale insight can help you understand your
customer.