We've posted templates for asking Van Westendorp Price Sensitivity Meter (PSM) questions in Lighthouse Studio and analyzing the data in Excel. Download from our Tools & Scripts area. Want to make it more fancy with sliders? Expert Sawtooth Software Forum user Saurabh Aggarwal has shared a Lighthouse Studio template on our LinkedIn group. View Saurabh's Van Westendorp Sliders or download Saurabh's survey template. (Test thoroughly before using either ours or Saurabh's templates!)
CBC and ACBC (Adaptive CBC) are considered strong approaches for pricing research. But, if a new product doesn't have much competition and is so new to the marketplace that you have very little idea regarding what price buyers would expect to pay, then PSM can be a good and easy investigational option. It is a technique that involves asking just six questions within your survey. The analysis is straightforward and may be done in Excel.
The original approach for PSM lacked a linkage with choice, but the Newton-Miller-Smith purchase intent extension adds two 5-point scale questions and lends more credibility. It still has its flaws and certainly is no replacement for conjoint analysis, but in certain circumstances it may provide a good approach for investigating acceptable price ranges and relative price sensitivity. PSM tells us about the attitudes people have about price points and where those attitudes might create hurdles that marketing might have to overcome.