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.