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    aseem888
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    The document describes the Van Westendorp Pricing Model, which involves surveying 50 target consumers in India about their perceptions of 4 different price points - inexpensive, a great deal, expensive but still considering it, and too expensive - for an airless tire. The model identifies 5 data points that inform pricing strategy: 1) the point where cheap and expensive perceptions intersect, 2) where bargain and too expensive intersect, 3) where bargain and expensive intersect, 4) where cheap and too expensive intersect, and 5) the acceptable price range between the first and second intersection points.

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    yuguyy

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    The document describes the Van Westendorp Pricing Model, which involves surveying 50 target consumers in India about their perceptions of 4 different price points - inexpensive, a great deal, expensive but still considering it, and too expensive - for an airless tire. The model identifies 5 data points that inform pricing strategy: 1) the point where cheap and expensive perceptions intersect, 2) where bargain and too expensive intersect, 3) where bargain and expensive intersect, 4) where cheap and too expensive intersect, and 5) the acceptable price range between the first and second intersection points.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    5 views1 page

    Report Pricing

    Uploaded by

    aseem888
    The document describes the Van Westendorp Pricing Model, which involves surveying 50 target consumers in India about their perceptions of 4 different price points - inexpensive, a great deal, expensive but still considering it, and too expensive - for an airless tire. The model identifies 5 data points that inform pricing strategy: 1) the point where cheap and expensive perceptions intersect, 2) where bargain and too expensive intersect, 3) where bargain and expensive intersect, 4) where cheap and too expensive intersect, and 5) the acceptable price range between the first and second intersection points.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Van Westendorp Pricing Model

    A group of 50 respondents among the target segment in India are asked directly
    about the following the four questions:
    1. Price at which you would consider an Airless Tire to be inexpensive that
    you would have questions about its quality? (Cheap)
    2. Price at which you would consider an Airless Tire to be a great deal?
    (Bargain)

    3. Price at which an Airless Tire would start looking expensive, but you still
    might consider it? (Expensive)

    4. Price at which an Airless Tire will be too expensive to consider? (Too


    Expensive)

    As shown in the chart, there are five data points that can inform about the
    pricing strategy:
    1. Point of Marginal Cheapness: The price where the percent of
    respondents who think it is
    too cheap is the same as the percent of respondents who think it is
    getting expensive.
    Intersection of Cheap and Expensive plots:
    2. Point of Marginal Expensiveness: The price where the percent of
    respondents who think it is too expensive is the same as the percent of
    respondents who think it is a bargain.
    Intersection of Bargain and Too Expensive plots:
    3. Indifference Price Point: The price where the percent of respondents
    who think it is getting expensive is the same as the percent of
    respondents who think it is a bargain.
    Intersection of Bargain and Expensive plots:
    4. Optimal Price Point: The price where the percent of respondents who
    think it is too expensive is the same as the percent of respondents who
    think it is too cheap.
    Intersection of Cheap and Too Expensive plots:
    5. Range of Acceptable Prices: The price range between the Point of
    Marginal Cheapness and the Point of Marginal Expensiveness.

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