Price Sensitivity Meter (PSM)

Definition

Price sensitivity meter (PSM) refers to a research method for establishing the range of prices that customers are willing to pay for a product.[1]

The technique was introduced as the Van Westendorp Model by Dutch economist Peter van Westendorp in the 1970s.[2]

 

 

References

  1. ^ American Marketing Association, AMA Dictionary.
  2. ^ Michael Lieberman. “Pricing research: A New Take on the Van Westendorp Model.” Quirk’s Marketing Research Review, June 2015.

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