Maximize your profitability by asking your target consumers the Van Westendorp questions, each beginning with “At what price would shoppers consider this product or service to be….” Here is my version of the ends of the four questions:
…inexpensive enough that they’d think hard before deciding not to purchase it?
…expensive enough that they’d think hard before deciding whether to purchase it?
…so inexpensive they’d think there might be something wrong with the item?
…so expensive that they’d immediately reject the idea of buying the item?
Notice my wording uses “would shoppers consider” instead of “would you consider.” A number of studies by survey experts conclude that people tend to give more useful answers when the questionnaire takes a “my best friend” orientation. Ask each respondent what others like her believe, feel, and intend.
Recently announced research findings strengthen the case for using the “my best friend” technique. I’ll add, though, that those doing the research don’t agree with me about this. I’ll tell you the findings and let you decide for yourself.
Researchers at Yale University asked study participants about willingness to pay for items ranging from DVDs to iPhones to chocolate truffles to books to artwork to sporting goods to teddy bears. They even asked about imaginary items like a trip to the moon and a pill that would allow the consumer to speak French.
Across that range, a representative sample of the U.S. population gave estimates. Analysis of the results showed that estimates of what others would be willing to pay were repeatedly about 40% higher than estimates of what the study participants said they themselves would be willing to pay.
The researchers say this indicates a “my best friend” orientation to the questions gives unrealistically high dollar amounts. However, I believe it is the estimates of self-willingness which are unrealistically low. My reason is that consumers like to brag about getting a better deal than others.
Researchers at University of Alberta, University of Calgary, and University of British Columbia concluded that when people believe they might have been able to wrangle a better deal on a product or service, this conclusion leads to them feeling a threat to their self-esteem and their self-image. They fear not only that others will see them as being suckers, but also that they’ll see themselves that way. The researchers found that people generally lie about good deals they got.
Click below for more:
Answer Van Westendorp Pricing Questions
Expect Shoppers to Expect Nonexistent Discounts
Help Consumers Build Useful Attitudes
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