Applications of Price Sensitivity Meter
EPIC Conjoint’s easy-to-use Price Sensitivity Meter applies best-in-class algorithms and intuitive charts that generate actionable insights in almost real-time, such as:
Unlock actionable insights for Use Cases such as:
- How to price innovation - a product or service so new to the market that consumers have no competitive offers in mind?
- What is the optimal market entry price point for my product, and what prices do consumers consider as acceptable?
- Below what price point would people doubt the quality of my product?
- Which product concept shows the highest acceptable price range?
- What is the customer segment with the highest price tolerance, to which I should ideally market my product to first?
Marketing / Customer Insights:
- What price point is considered too cheap, which would question my brand perception?
- What price range should I test in a Conjoint Analysis?
Highlights of EPIC Conjoint
Conjoint Analysis should not be rocket science!
With our extremely user-friendly survey platform and exceptional customer support, companies can unlock revenue-enhancing insights using best-in-class simulators and intuitive charts. The world’s leading brands trust EPIC Conjoint due to it’s unrivalled ability to precisely capture Price Elasticites from real-world trade-off decisions.
Full-Service Survey Process
Your personal EPIC Conjoint expert is by your side during all stages of the survey project (design, distribution, analysis).
Actionable outputs and intuitive tools
Focus on what really matters: Actionable survey results generated within 1-3 business days, presented in intuitive charts
Segment level insights
There is no such thing as an average customer: Use our customizable filters to unlock insights at either a market segment or individual respondent level.
EPIC Conjoint has given us one of the missing pieces in our drive to offer a full suite of agile insight tools to our business – the ability to conduct sophisticated conjoint tests as quickly as we might evaluate a concept or creative.
EPIC Conjoint’s PSM tool provides actionable insights in almost real-time. Using advanced filters, market- and customer segment insights such as the following can be unlocked:
Van Westendorp Chart
This chart consists of four lines with four intersections, which form the psychologically acceptable range of prices. The optimal price point (also referred to as market entry or penetration price), as well as the indifference point, are also automatically calculated.
The optional Newton-Miller-Smith extension unlocks a Demand Curve which maps the calibrated purchase intent for any given price point. Demand-sensitive price points can be easily identified.
The reach distribution maps the percentage of respondents who stated that a given price is within the acceptable price range.
Relative Revenue Index
This chart illustrates the price point at which revenue is expected to be maximized, based on the acceptance of any given price point.
How Van Westendorp’s Price Sensitivity Meter works
This technique involves showing respondents a product/service and asking four questions:
- At what price would this product be so cheap that you would doubt its quality and not consider it?
- At what price would this product be a bargain—a great buy for the money?
- At what price would this product seem expensive, but you would still consider buying it?
- At what price would this product be too expensive for you to consider?
- The optional Newton-Miller-Smith extension adds two purchase intent questions (how likely are you to buy this product?) at the two middle prices, which unlock additional Demand and Revenue Insights.