Product & Sales Optimization: Ensure your new product’s continuous success

• The “Price Sensitivity Meter” was first introduced by Dutch economist Peter van Westendorp in 1976


• It is based on the data from four questions that focus on the price points where an offering is seen as too expensive to purchase, too cheap to purchase (where the quality is under question), getting expensive (but still of a purchasable price), and good value for money (an attractive price point).


• The intersections of the curves are analyzed to identify the optimum price range i.e. the lower and upper bounds of acceptable pricing, and the optimum price point.

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A major producer of LED lighting systems approached B2B International to aid a successful re-launch of one of their brands. A couple of years prior to the project, the client had launched a new, lower cost product range. Initially positioned separately, the company then decided to market the new range under their core brand.

To aid a successful re-launch, our client wanted to get an understanding of installer's perceptions of the core brand versus competing brands and what strengths & weaknesses major brands have.

Our client also wanted to get insight into the perceptions of the potentially competing brands in their product portfolio and see whether each proposition is understood and considered relevant for purchase. The major question the client had was whether the cheaper product range would have a negative impact on the perception of the core brand.