The app provides information that can assist with pricing a product or service.
How It Works
This price sensitivity analysis is based on economic theory developed by Peter van Westendorp. Key data results are aggregated from responses to a set of questions about what prices for a product or service are considered to be too high or too low. Once a survey has been completed with answers to the set of questions, the data can be uploaded into this app via a .csv file. The app provides a table and visual representation of an optimal price range and price point formulated from the sensitivity of respondents.
The procedure to collect the data via a survey is provided in our ebook: Digital Marketing Strategies available online: https://he.kendallhunt.com/product/digital-marketing-strategies
Why Use This App
Understanding what price customers are willing to pay is important when bringing a new product to market. The price sensitivity analysis can help determine the best strategy to appeal to a specific target market to get the most sales.
If a company is pivoting or repositioning its offering, knowing the optimal price range is useful in developing a pricing strategy. The price sensitivity analysis can assist with revenue projections in a business plan.
When changing a product’s features, knowing how sensitive customers are to the pricing can identify what’s acceptable to the target market. The price sensitivity analysis can provide a more accurate price point with proposed changes.
The price sensitivity analysis provides valuable insights about how to increase sales, achieve greater profitability and gain customers’ favor by finding out what price is appropriate for them to consider purchasing a product.
App Instructions
How to upload data is provided in a set of instructions available within the app. A template is included to assist with organizing the data. Users can get immediate access to the pricing table and chart once data is entered via a .csv file.