The Van Westendorp method uses a series of questions, given to respondents to identify key psychological price points to understand how much they’re willing to pay for a product.
It enables the marketer to see a range of prices that might be appropriate, and to see the fall off in consumer interest that occurs as price rises.
It can be particularly useful if the marketer is contemplating a change in pricing, or wants to understand consumer perceptions of own products vs. a competitor’s products.
To add Van Westendorp question type, follow below mentioned steps:
Go to: Login » Survey (select a survey) » Edit » Workspace.
Click on add question button
Under Advanced question types » Pricing Analysis, click on Van Westendorp question.
Customize the question text and answer values as per requirement
Validation: By default, validation option is turned off. Respondents can skip and move ahead in the survey without answering the question. You can enable validation if you don't want to allow respondents to skip this question. By enabling validation option you can see a drop-down with options - force response and request response.
Force response option makes a question mandatory/required, as shown in the above image. The respondents cannot finish survey without answering a mandatory question.
When you select request response, the respondent gets a pop-up in case a question is not answered, requesting to answer the question or continue survey without answering.
Under Settings,
You can set minimum and maximum value that a respondent can enter as price.
You can select 'Reverse Question Order' which will display 'Too Cheap" question first and then in similar manner, upto 'Too expensive' question
You can also add Prefix or Suffix text boxes, if required. For example, USD for prefix
How does Van Westerndorp question work?
While taking the survey, the respondent needs to enter the price that they consider for each category - too expensive, expensive/high side, cheap/good value and too cheap.
Errors while taking survey
While taking the survey, the respondent can face errors if:
Value entered in any question is higher to that of the Max value set in settings
Value entered in any question is lower to that of the Max value set in settings
No value is entered for any of the four questions
How do I view the report for Van Westerndorp question?
To view the report for Van Westerndorp question:
Go to: Login » Surveys (select a survey) » Analytics » Dashboard.
You can see the following chart:
In the above chart, the responses for too expensive, expensive, bargain and cheap categories can be seen. The blue part shows the acceptable range of prices for the product.
Turn pricing perception into decisions with Van Westerndrop and Gabor-Granger
License
This feature is available with the following license :