There are two dominant research methods in pricing: conjoint analysis and van Westendorp.
The
Price Sensitivity Meter (PSM) is a market technique for determining consumer
price preferences. It was introduced in 1976 by Dutch economist Peter van
Westendorp. The technique has been used by a wide variety of researchers in the
market research industry. The PSM approach was a staple technique for
addressing pricing issues for the past 20 years. It historically has been
promoted by many professional market research associations in their training
and professional development programs. The PSM approach continues to be used
widely throughout the market research industry and descriptions can be easily
found in many market research websites.
