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Price Sensitivity Meter (PSM) (PowerPoint PPTX)
PowerPoint (PPTX) 21 Slides FlevyPro Document
DESCRIPTION
The decision for pricing a product or service isn't as simple as it seems. Pricing way above the rival products risks not attracting the required customers while charging way below the competitor products could be equally detrimental.
Manufacturers can utilize research to have a better understanding on what consumers are willing to pay for a product. There are a host of research-based pricing approaches available. This deck provides a detailed overview of the Van Westendorp Price Sensitivity Meter (PSM) approach.
The Price Sensitivity Meter approach encompasses the following key steps:
1. Plan and Execute Market Research Survey
2. Analyze Data
3. Evaluate Intersections to Determine Price
The PSM is an effective tool of analyzing prices for innovative, emerging products.
Additional topics discussed in this presentation include Direct Price Elicitation, Indirect Price Elicitation, Conjoint Analysis, and Pros & Cons of the PSM approach.
The slide deck also includes some slide templates for you to use in your own business presentations.
The Price Sensitivity Meter (PSM) method, developed by Peter Van Westendorp in 1976, is a robust approach to determining optimal pricing for new products. By asking consumers four key questions about their price expectations, businesses can gauge the maximum amount a consumer is willing to pay and set a price that balances competitiveness and profitability. This method is particularly useful in the early stages of product development when price uncertainty is high.
The PPT includes detailed templates and examples to guide you through each step of the PSM process. From planning and executing market research surveys to analyzing data and evaluating price intersections, this deck provides all the tools you need to implement the PSM approach effectively. The comprehensive coverage of direct and indirect price elicitation methods, along with conjoint analysis, ensures you have a well-rounded understanding of various pricing strategies.
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Source: Best Practices in Pricing Strategy, Price Sensitivity, Conjoint Analysis PowerPoint Slides: Price Sensitivity Meter (PSM) PowerPoint (PPTX) Presentation, LearnPPT Consulting
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