Van Westendorp Pricing Analysis Total Sample (Dan, Need 2 slides, Acceptors in Exec Summary, both Total Sample and Acceptors in Linescale Report )

• Traditional Van Westendorp analysis is done on Total Sample, since most pricing data typically do not have an “Acceptor” equivalent
• Linescale suggests attention focus on the Acceptors ratings, as these are more relevant to setting price point than Total Sample, which includes those not interested in the concept.
• In addition to the four traditional Van Westendorp price points, Linescale suggests one additional analytic point, the “flexion point”, where “Too Expensive” takes a discontinuous jump – usually in the mid-twenty percent to mid-thirty percent area.
• Linescale interpretation is “The highest optimal Total Sample price point is a price point just lower than the discontinuous jump.”
The maximum price point for this [product, concept] on a TOTAL SAMPLE BASIS is [ (a) calculate the dollar number in "Too Expensive" column which is 40% or less and has a gap of six percentage points or more between it and the next lowest number, and select the dollar number immediately below that number. (b) If no number meets that criterion, define the highest dollar number with a value of 36% or less and select the number immediately below that number.]

 

 
Prices
Begins to get cheap
So cheap you question quality
Begins to get expensive
So expensive you wouldn't use it

Dan - in this area we need the data from the table on the left plotted as a line graph

There are four curves plotted "Cummulative Percentage" (vertical axis) against "Prices" (horizontal axis).

Maximum value for "Cumulative Percentage" should be 50%, and we need a legend on the right side of the chart area

 

Nothing
99
98
3
3
$0.99
96
93
3
4
$1.99
83
46
4
4
$2.99
58
26
7
6
$3.99
30
19
22
8
$4.99
20
16
41
13
$5.99
12
14
61
27
$6.99
8
12
72
40
$7.99
6
11
80
52
$8.99
4
10
85
56
$9.99
4
9
90
64
$10.99
3
6
97
76
$12.99
2
4
98
81
$14.99
1
2
98
88
$17.99
1
2
99
90
$19.99
0
1
100
91
$24.99
0
1
100
100