Van Westendorp's Price Sensitivity Meter

Participants in a PSM exercise are asked to identify price points at which they can infer a particular value to the product or service under study.

Note that the standard method requires that two of the four cumulative frequencies must be inverted in order to have the possibility of four intersecting points.

A common description of the intersections is that the crossing of "too cheap" and "expensive" can be the lower bound of an acceptable price range.

Similarly, the intersection of the "too expensive" and "cheap" lines can be viewed as the upper bound of an acceptable price range.

This is the point at which an equal number of respondents describe the price as exceeding either their upper or lower limits.