If an in-depth understanding of price sensitivity is required, our Price Sensitivity Module could provide the insight needed.
It is based on the Price Sensitivity Meter developed by Dutch economist Peter van Westendorp.

The output will reveal the price at which:

• sales will be maximized
• purchase consideration will evaporate
• the product starts to be considered expensive
• the product begins to be considered a bargain
• the quality perception of the product will be questioned

The Price Sensitivity Meter analysis can be supplemented by a value comparison exercise in which respondents are asked to indicate the expected relative price position of the target product on a non-price marked scale against a range of benchmark products selected from competitors and adjacent markets.

A value perception study is particularly helpful in categories in which consumers’ knowledge of precise pricing is fuzzy such as in categories subjected to regular promotional activity. Using the known benchmark prices, the results can be translated back into £s for the test product.

Price sensitivity testing can be conducted alone or in conjunction with other research. It can be conducted face to face or remotely by post or on-line.

For more information E-mail: peter.knowles@heawood.com or call 01625 582829