Business’ success relies upon the customers’ satisfaction level and loyalty. The survey is the main tool to get the respondents’ opinion, views and thoughts. If your enterprise wants to launch some new products but has no idea about the reasonable and affordable price, you must go for a survey to finalize its price. Many survey tools, templates and question types are available according to the survey type and business requirement.
What do you know about Van Westendorp Analysis?
Whenever you talk about the finalization of the product’s price, you must consider Van Westendorp Survey Analysis. It’s a survey methodology to determine the range of acceptable and affordable prices for the product by analyzing the price and value of the product from the customers. It is also known as Price Sensitivity Analysis (PSA). The analysis depicts what should be the final price of the product to get maximum sales and customers from the market.
Van Westendorp Question
The survey questionnaire consists of a minimum of four options to ask the respondents to choose the product’s price and value from them. Too expensive and would not buy is included in the 1st option while expensive would be considered in the 2nd option. The third and fourth option includes “bargain price”, and the last one includes “too cheap and questionable quality”. The results are concluded, and the product’s price and value are compared to finalize its price.
Why use it?
The survey methodology is the best to execute while launching new products and finalizing its affordable price. The marketing strategy includes this tool to set the price in the market. It’s imperative to get views and suggestions from the customers to provide the best products and services. You can use it if you are launching the software product and don’t know about the sales ratio and customers’ demand. The survey tool assists the software company to finalize the product’s quality and price. For example, if you get the optimal price point on the graph that describes the bargain and expensive price ratio, you have to fix the price between the expensive and the bargain price.
A quick way to create the Van Westendorp Model
It’s simple and easy to create this survey model. You can navigate “Create Survey” and select the Van Westendorp model. You can easily add the question wordings and adjust the price ranges according to marketing strategy. The company can send this model either by E-mail or URL link, and the company at least receives a minimum of 50 responses for better results.
How does it work?
It works by plotting the curve between multiple responses about the product’s price. Multiple curve points depict the various price ranges, such as the point of expensiveness, cheapness, and optimal price point. The graph is plotted between the X-axis and Y-axis, where the x-axis contains all possible price options while the Y-axis contains percentage responses of the respondents. The different intersecting points are obtained as a result of the curve. The graph shows the optimal price point (OPP) indifference point price (IDP). In this way, you can conclude the average acceptable price for your new launching product after analyzing the complete statistical graph.
The analysis assists the enterprise to develop the products and fix the price according to the customer’s and market’s demands.