Price Sensitivity Meter

What it measures

A consumer price research technique using four price perception questions to identify acceptable price ranges and optimal price points. The four curves (too cheap, cheap, expensive, too expensive) intersect to define the Range of Acceptable Prices and the Optimal Price Point. Widely used in new product pricing research and willingness-to-pay studies.

Representative items

• At what price would this product be so cheap that you would doubt its quality? (Too Cheap)
• At what price would this product start to seem like a bargain — good value for the money? (Cheap/Acceptable)
• At what price would this product start to seem expensive, but you'd still consider buying it? (Expensive)
• At what price would this product be so expensive that you would not consider buying it? (Too Expensive)

Citation

Van Westendorp, P. (1976). NSS price sensitivity meter (PSM) — A new approach to study consumer perception of prices. ESOMAR Proceedings, 139–167.