The Van Westendorp Price Sensitivity Meter (PSM)

The Van Westendorp Price Sensitivity Meter (PSM) is an appropriate and widely used methodology in pricing research to understand an expected and optimal price range for a new product. Especially, where there are no real-world references to benchmark against.
The Van Westendorp Price Sensitivity Meter is a survey-based approach that aims to determine an optimal and expected price range for a product or service by assessing customers' perceptions of the value of the product’s benefits and assessing their willingness to pay for them. This video explains what the Van Westendorp PSM is and how to set up and create such an analysis. The video then explains how to incorporate the Newton-Miller-Smith extension for even more accurate pricing estimates.
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Music used in the video:
Andrew Applepie: I'm so...
Blue Wednesday: Middle School