How Wizer Used A.I. to Complete a van Westendorp for $500

Conducting pricing research is an important step in uncovering the value that consumers place on products to discover the price range consumers are willing to pay for a product, service, or idea. It also gives organizations insight on how to increase revenue and convert market share by means of price optimization for proposed innovations, design changes, or concepts. Since marketing today is becoming more dynamic and consumer-centric, we aim to help our clients address rapidly changing consumer preferences that may affect pricing decisions—putting consumers at the heart of pricing research and ensuring that the price for a product or service is at the optimum point for all participants.

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A Dutch economist, Peter van Westendorp, introduced a simple tool for determining the optimal price for products (OPP) in 1976, called the van Westendorp Price Sensitivity Meter (PSM), the technique asks respondents four indirect questions about their willingness to pay and measures overall price sensitivity of consumers. In other words, it discovers, from actual consumers, prices for a product or service they perceive to be either too high, too low, or just right.

Access to the van Westendorp PSM can be expensive, not only because of its complicated nature but also because higher performing organizations will make use of the tool frequently to come up with up-to-date pricing structure based on shifting market landscape, product innovations, communications, and ever changing consumer perceptions.

Wizer makes pricing sensitivity research programs cost effective for everyone by using machine learning and algorithms to automate the research. Leveraging our technology, we could add the van Westendorp PSM as a turnkey service and provide this essential outlook on pricing as a part of our research offerings. This means clients seeking a pricing optimization tool can now “add to cart” this previously prohibitively expensive add-on – starting at only $500 per concept or tested product – and get results in days, not weeks.

A quantitative approach, the van Westendorp PSM method asks questions that characterize four price points — what is so cheap that you question quality; expensive, but acceptable; too expensive to consider; and cheap, but a fair deal. Plotting the answers to these questions aids in isolating the “optimum” range and price.

Even though the PSM defines an OPP, it is also important to consider the range of acceptable pricing which falls between the upper and lower price threshold. Prices within this range are accepted by the majority.

Conducting pricing research with van Westendorp PSM should be done on a regular basis as there are many factors affecting consumer perceptions, for example, when a competitor comes out with a new product or service that is cheaper or more expensive, or when there is a significant change to the overall consumer target.

With artificial intelligence, Wizer makes van Westendorp PSM more accessible for everyone. Using this technique, in addition to the company’s other knowledge resources, Wizer has provided insights regarding pricing strategies and guided clients not only in identifying the right prices but also in improving consumer perceptions in their markets.

CASE STUDY:

At Wizer, we applied the van Westendorp PSM in a concept test study conducted for a leading food manufacturer examining new food concepts and their ideal pricing points. The results show that the OPP is $7.30, and the optimal price range is between $6.57 and $10.90.

Van Westendorp Case Study

The van Westendorp PSM provides a data-driven method in determining the pricing strategy for a product or service. It is easy to implement and relatively simple to analyze. Moreover, as presented, it is useful in finding price thresholds and perceived normal prices.

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New Product Release: The Wizer Dashboard

From every point of view, your reports are going to look much better: Wizer revamps its consumer research reports with a new look, exciting capabilities for data sharing and more.

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Wizer’s new product release is the new standard for market research design, execution and analysis. Our latest product release provides marketers and research professionals with cutting-edge tools to support cross-company collaboration, knowledge sharing, supporting access provisioning to multiple users, adding company branding and more.

And if that’s not enough, Wizer also delivers better user experience for the team. The new superbly designed dashboard and reports dispense news and notifications, your research timeline and facilitates the initiation of new research on the fly.

Here are the highlights of the new release:

The new dashboard

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A refreshing new look for our dashboard displays all of your latest research projects and their progress at a glance.

With the new dashboard:

  • Launch new research studies with a click of a button.
  • Contact an expert to support your research.
  • Keep on top of the latest news with a continuously updated newsfeed.
  • View and manage users as well as provision access.
  • Add your company logo and branding to the dashboard.

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Better, more visual reports

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Wizer’s new release includes more impactful, more striking reports with smart infographics that simplify and clarify complex data and analysis.

Contact us today to learn more about how Wizer can help you with your next consumer research study.

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How to choose a market research agency?

Making sure that your company receives the best research deliverables possible is not only of paramount importance, but also quite straightforward, once you know the right criteria to select upon. It is imperative that you select the right partner that would provide you with what is in the core of your business decision process. We have gathered some pointers that we’d like to share with you, about how to choose the market research agency that gets to have direct impact on your most valuable business assets, i.e. your brand or product:

  1. Understanding Your World

The first thing that you would want to look for in an agency is: how well do they know my domain? They must possess extensive industry knowledge concerning the family of business problems you may have, even the ones you’re not yet aware of, and offer a wide range of plausible solutions, including industry norms, business process optimization, etc.

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  1. Delivering Fast and Reliable Results

In today’s business world, time is getting increasingly shorter. The agency that you work with should have that sense of urgency translated into their deliverables, and be able to get results to you, sometimes even within a matter of hours, but mostly within a few short days, depending on complexity of the sampling.

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  1. Pay what’s Reasonable

Paying for the services that you receive is all a part of owning a business, but you also want to make sure that you’re not overpaying your bargain. Finding an agency that offers a reasonable price and has a history of positive results is your best option. It is imperative that you don’t astray from your budget and/or get less than worthy information. don’t be tempted to paying for fancy names and brands if it’s unnecessary.

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  1. Feel the Pulse: Get Real-Time Accessibility

Being able to monitor the data as it’s being populated will give you the most up to date information. Take the time to let your agency know that you expect to have access to the data without time of day and location restrictions. having a working internet line should suffice.

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  1. No More “TMI”

The benefit of a business relationship is to work with people that know how you work. You should be able to have access to your data, receive an executive summary, and get all of the information that you need without having to ask for further clarifications. Everything should be presented in a clear and concise manner that you understand merely by looking at.

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If you want to find this particular agency with those unique capabilities and strong connection to your core business, Wizer is the right choice for you, because not only is it an agency, but an automated agency – the world’s first!l

Here at Wizer we are able to give you everything that you could need, and more. Contact us for more information on how we can help you to grow into a bigger and better business.

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Get Wizer – Market Research Platform

Wizer is an intelligent automated research platform that dramatically simplifies the complex challenge of running professional market research surveys. We do so by digitally modelling professional research experience & industry expertise into our solution, which is tremendously scarce in today’s online research tools, and so expensive & time consuming when turning to real-life market research agencies.

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Our virtual research wizard emulates decades-worth of collective market wisdom & expertise of multiple research professionals, industry experts, data analysts and presentation gurus. Not only does it guide & advise you through the entire challenging research-conducting process, it even automates all of the hard work for you.

How We Do It – Market Research Expertise built-in, from start to finish

Addressing the problem:
who you are, what your business question or pain is

Defining & Refining your survey:
Make it yours: your questionnaire, your brand, your logo, your products\services.
This is not a template, it is Your Own questionnaire

Presenting useful data:
Data is analyzed, and eventually you get distilled insight for each of the goals preliminarily set