Price Optimization (Van Westendorp)

ARTICLE

Price Optimization (Van Westendorp)

The Price Optimization (Van Westendorp) solution helps you figure out the right pricing strategy for your product or service by measuring how much your target market is willing to pay. This is especially useful when bringing a new product to market, pivoting or repositioning an established product, or changing up product features.

This solution uses the Van Westendorp methodology—a series of four standard questions, helping you collect data on price perceptions in an unbiased way so you can identify an optimal price point, as well as an acceptable price range for your product or service. Plus, you can add additional custom questions to your survey, to gather other important information from your target audience, all at once. In your analysis, you can segment your data by your custom survey questions or targeting options to better understand various audience’s willingness to pay.

Setting Up Your Survey

Get Started

To set up your study:

  1. Visit our Market Research Solutions page to Get started on a Price Optimization (Van Westendorp) study.
  2. Replace Untitled study with a study title on the Get Started page. Review what to expect in setup and after launching your study.
  3. Click Next: Add survey components.

Add Survey Components

To add survey components:

  1. Add an introduction to let survey takers know exactly what you want them to do while completing your survey.
  2. In the Add stimulus section, add a text description and images to provide context respondents need to give you helpful feedback.
  3. Under Select product type, select the term that best describes the stimuli you're testing. Select Other if you want to use your product's name or provide more detail about your product type, like "monthly subscription."
  4. While the standard methodology questions aren't editable in the Set up the Van Westendorp questions, you can set the Currency, and Minimum or Maximum cost limit.
    • By default, the toggle is turned on to Include answer option validation. This is recommended to ensure respondent's can't enter answers that don't make sense. For example, "$100 is too cheap" and "$5 is too expensive."
  5. Click Next: Customize survey.

Customize and Preview Your Survey

You can add additional custom questions to your survey to gather other important information from your target audience. Feel free to use the Question Bank for pre-written questions, implement logic, and brand your survey.

Click Preview from the top right corner to test your survey in a new window and see what it will look like to respondents. You can even share the preview with others to gather feedback.

Once your survey looks good to you, click Next: Target audience.

Choose Your Target Audience

SurveyMonkey Audience panelists have been sorted based on hundreds of targeting options so you can target your respondents based on country, demographics, employment status, hobbies, religion, and more.

To choose your target audience:

  1. Select your target audience by choosing Country, Gender, Age, and Income criteria.
  2. Select More Targeting Options to browse and choose from hundreds of other targeting options.
  3. (Optional) Select whether to add a screening question to narrow down your target audience and disqualify people who aren't the best fit for your survey. If you add a screening question, estimate how many people you expect to qualify for your survey.
    • If you choose to include a screening question in your survey, open the Customize survey page in a new tab.
    • Add a qualifying question to the beginning of your survey. We recommend either Multiple Choice or Checkboxes.
    • Add skip logic that disqualifies people if they select certain answer choices.
    • Return to the Target audience setup page to estimate your Qualification Rate.
  4. Review your target audience summary and click Checkout.

Checkout

To checkout your study:

  1. Review the details of your order.
  2. Under Payment Method, select to pay with Credit or Debit Card, or with My Credits.
  3. Enter your Billing Details, review the total, and select Confirm.

Once you submit payment, we'll start gathering responses for your survey right away.

Analyzing Your Data

In the Analyze section, there's an Overview, Key findings, and Survey results page.

  • Overview: Track your Audience project's status, view how many response are collected, and see a summary of your targeting criteria.
  • Key findings: View the Van Westendorp price sensitivity meter and some basic statistics.
  • Survey results: View charts and data for your custom questions.

Price Sensitivity Meter

The price sensitivity meter is a chart with the results of the Van Westendorp questions arranged together in four curves. There are four main price points that stand out: the point of marginal cheapness, the point of marginal expensiveness, the range of acceptable pricing, and the indifference price point. These plotted data points let you visually depict notable price points for your product or service, along with an acceptable price range based on the responses. Learn more about how to use the price sensitivity meter.

Filter Your Results

Filtering allows you to show responses that match your filter criteria and hide the rest. Filters help you to identify differences between segments of your audience based on your custom questions, targeting criteria, or metadata.

Export Your Data

To export your data:

  1. Select Export.
  2. Choose XLSX or CSV format.
  3. Select Current View if filter rules are applied or Original View if no rules are applied.
  4. Name your file and select Export.

The export appears at the bottom of your browser window or is available from your computer's Downloads folder.