Friday, August 19, 2022

Van Westendorp- Pricing Research Model for Product Marketing

There is massive competition in the business market, and every company wants to excel from the other to gain maximum lead and sales from the customers. The progression of the business market is directly related to the customers’ satisfaction. But the question is how can we get feedback or opinion from the customers. Van Westendorp- Pricing Research

The survey plays a fundamental role in accumulating the respondents’ responses regarding the company’s services, products, Van Westendorp- Pricing Research and features. A company can easily understand the like and dislike ratio from the customers’ perspective by conducting a survey.

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What is Van Westendorp? For Research

It is a research-based survey that determines the acceptable price of the products selected by the audience of the customers. The respondents are given four different price points and are forced to select the most reasonable option to help the company make a reasonable price.

In the business market, the price value of the product is significant as it can make your business progressive. It also shows the customers’ purchasing capability, which is necessary to maximize your sales and shares in the business market and compete with the competitors.

Importance of Van Westendorp Are Research

Van Westendorp is a pricing defining model that helps allocate a reasonable price of the product to buy it without any trouble easily. For example, a software company wants to upgrade the packages of the product, but it doesn’t have any idea about the final price. For this purpose, this survey plays a vital role in asking the respondents to choose one of the options from the given question type survey. 

The respondents’ response will help you fix a reasonable price for the software product to get maximum sales. It is a pricing research survey that can enhance your company’s product value in the business market and boost your sales and revenue.

How can you use this Survey template?

It can be used to allocate the reasonable price of the products to sell products to the customers. It helps by forcing the respondents to enter the specific price point of the product to make it reasonable and commercial. It consists of four points:

  • It is too expensive and will not consider buying
  • It is expensive but will consider buying
  • It would be a bargain price
  • It is too cheap to question the product quality

It is used for pricing research methodology to fix the reasonable price of the product, which is responded to by the respondents. You can not risk allocating the product’s price before launching for the customers because if it were too expensive, then there would be strong chances of fewer sales. If it is too cheap, then it would not be easy to justify the quality of the products.

How can you extract results from the respondents’ responses?

After conducting a survey, the next step is to accumulate all the responses in one frame to extract results. The pricing model provides curves of different prices and ranges, and by looking at the curves, one can easily understand the reasonable price of the product. The curve for the too expensive range rises from low to high, and the curve for low price falls from high to low. The optimum point will be considered as the reasonable price of the product.

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