Market Research: Foundations to Practice · Pricing Research
The Van Westendorp Price Sensitivity Meter
This four-question technique remains one of the most widely used pricing research tools precisely because it triangulates an acceptable price range rather than asking for one number directly. This chapter covers how it works and its real limitations.
The Van Westendorp Price Sensitivity Meter asks each respondent four sequential questions about the same product: at what price would this be so cheap you'd question its quality, at what price would this be a bargain, at what price would this start to seem expensive, and at what price would this be so expensive you would not consider buying it at all, gathering four distinct price points per respondent rather than one direct estimate.
Key Takeaways
- Van Westendorp asks four price questions per respondent (too cheap, bargain, expensive, too expensive) rather than one direct willingness-to-pay estimate.
- Plotting cumulative distributions of these four points identifies intersection points defining an acceptable price range, not a single number.
- The method sidesteps hypothetical and social desirability bias by inferring price sensitivity indirectly through four distinct psychological reference points.
- Real limitations include ignoring competitor pricing, not capturing segment variation by default, and producing a range rather than one exact price point.