The Van Westendorp method is a technique developed by the economist Peter van Westendorp to measure price willingness and price sensitivity.
The measurement is carried out within the framework of customer surveys as a further development of the direct price enquiry. The following four questions are asked:
- At what price would you consider the offer to be too cheap because you have reasonable doubts, for example about the quality (too cheap)?
- Up to what price would you consider the advertised as acceptable / a good deal (cheap)?
- At what price would you consider the offer to be expensive but still consider buying (expensive)?
- At what price would you stop buying the offer because you consider it too expensive (too expensive)?
By evaluating the results of the answers, an upper and a lower price limit can be determined for optimal pricing.