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Van Westendorp Test – Price Sensitivity Meter (PSM)

Respondents’ answers registered by this method allow ascertaining the perception of product value and finding out how much a respondent is willing to pay for the product. This method is based on an assumption that each group of products/services has a certain interval of prices that a consumer is willing to pay for a particular product/service. This price interval is limited by a too high price, which would not be paid by a consumer, and a too low price, which would raise doubt about quality.

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