4th

"What is a price model (""price metric"")?"

"The basis/unit on which a customer is charged; it defines what you charge for, not how much."

"Price model: what do I charge for? (examples)"

"Weight; Units; Bags; etc."

"Guidance: price models should encapsulate what?"

"They should encapsulate value and relate to value drivers."

"Guidance: what customer feeling should a good price model convey?"

"A sense of fairness."

"Guidance: why can price models be strategically useful?"

"They can be a source of differentiation."

"Guidance: what must be ready to implement a price model?"

"Your IT systems must be prepared for implementation."

"Why do price models help commercial communication?"

"They support the ability to speak the same language as the customer."

"What is the range of price models shown (from...to...)?"

"From pay-per-use to flat fees, including hybrid options."

"Price model type: pure pay per use"

"Price increases directly with volume/usage; no fixed fee."

"Price model type: pay per use with a maximum charge"

"Pay-per-use structure with a cap (maximum total charge)."

"Price model type: progressive/digressive pay per use"

"Unit price changes with volume: increases (progressive) or decreases (digressive)."

"Price model type: monthly charge plus pay per use"

"A fixed monthly fee plus variable usage-based charges."

"Price model type: basic charge plus pay per use"

"A base fee (entry) plus pay-per-use on top."

"Price model type: pure flat rate charge"

"One fixed fee independent of volume/usage."

"Price model type: incremental packages / adaptive flat"

"Customers move through volume-based packages (adaptive tiers)."

"Price model type: package plus pay per use (run-on-rate)"

"Package includes allowance; extra usage charged at a run-on rate."

"Price model type: package plus pay per use with cap"

"Package + usage charges, but with a maximum total charge."

"What is Open Line (method) used for?"

"A visual representation of product positioning within the same category."

"Open Line: what is it (Step 1)?"

"Analysis based on drawing the expected position of products in a line."

"Open Line: what is it (Step 2)?"

"Each participant provides a point in the line."

"Open Line: why is it practical (Step 3)?"

"It is simple to conduct and allows straightforward interpretation to agree on positioning."

"Open Line: when to apply (condition 1)?"

"When there are at least two alternatives in the same product category."

"Open Line: when to apply (condition 2)?"

"When customers know well the other alternatives."

"Open Line: when to apply (condition 3)?"

"When you want an easy and inexpensive way to narrow down positions."

"Open Line question asked to respondents"

"""What price positioning would you expect for product X?"""

"Open Line output example: average expected mark-up"

"Approximately 5% average expected mark-up (illustrative)."

"When does Open Line work best?"

"When there is a clear leader to use as a benchmark."

"Open Line insight: does it vary by segment?"

"Yes—expected price positioning can change substantially by customer segment."

"What does Van Westendorp help identify/validate?"

"Optimal price ranges (accepted price range) using a 4-question survey."

"Van Westendorp: what is it (core idea)?"

"Analysis of accepted price ranges based on four survey questions."

"Van Westendorp: the 4 questions are..."

"Too expensive; Expensive; Cheap; Too cheap."

"Van Westendorp: what does each participant do?"

"Sets price levels at which each condition is met (their price thresholds)."

"Van Westendorp: what do you determine by drawing the graph?"

"Four key intersection points that define limits and reference prices."

"Van Westendorp: main application 1"

"Narrow WTP down to maximum and minimum acceptance."

"Van Westendorp: main application 2"

"Identify which points fit profit-maximization vs penetration pricing."

"Van Westendorp: when does it work best?"

"When customers are familiar with concepts and prices."

"Van Westendorp: when can it be challenging?"

"When applied to innovations (customers lack price expectations)."

"Van Westendorp: minimum sample guidance"

"More than 10 respondents needed."

"Van Westendorp is also called..."

"Price Sensitivity Meter (PSM)."

"Van Westendorp: too cheap means..."

"So cheap you believe product quality cannot be that good."

"Van Westendorp: cheap means..."

"At which price you consider the product a very attractive offer."

"Van Westendorp: expensive means..."

"You would think about it, but maybe you would buy/subscribe."

"Van Westendorp: too expensive means..."

"So expensive you would not consider buying/subscribing."

"Why is Van Westendorp popular?"

"Simplicity and no need for very large numbers of responses."

"Van Westendorp lower price limit is the intersection of..."

"Too cheap and Expensive."

"What happens if priced below the lower price limit?"

"Risk of significant image loss."

"Van Westendorp upper price limit is the intersection of..."

"Cheap and Too expensive."

"What happens if priced above the upper price limit?"

"Revenue loss; only relatively few customers accept the price."

"What is the accepted price range in Van Westendorp?"

"The corridor between the lower and upper price limits."

"What is the ""optimal price"" in Van Westendorp (meaning)?"

"Neutral with target volume/market share (maximum penetration point)."

"What is the ""indifference price"" in Van Westendorp (meaning)?"

"Balanced price-image (not cheap, not too expensive); optimal from a price-image view."

"Van Westendorp (PSM): what can it compare?"

"Price ranges between different segments (illustrative example: large vs small lawyers)."

"Anatomy of Van Westendorp: what does line steepness indicate?"

"Steeper curves indicate higher price sensitivity; flatter lines show lack of price expectations."

"What does a flattened Van Westendorp line suggest?"

"Lack of price expectations."

"What does the point of optimal price show?"

"The maximum penetration point."

"What does a very narrow acceptance corridor suggest?"

"A commodity-like market (high comparability)."

"What do steep curves imply about customer loss?"

"Many customer losses with small price variations."

"What does it mean when key points are close together?"

"Stronger recommendation (closer points)."

"Anatomy of Van Westendorp: what do strong line alterations indicate?"

"Points of attention (sudden drops/increases in perceptions)."

"Example of line alteration interpretation"

"A price with sudden drop of 'cheap' and sudden increase of 'expensive' is a warning point."

"Van Westendorp used to define package price ranges (example)"

"It can define acceptable price ranges for Basic/Classic/Expert packages."

"Package Basic: indicative acceptable range (example)"

"€200-€400, with €750 as the upper end."

"Package Classic: indicative acceptable range (example)"

"€600-€875, with €1,200 as the upper end."

"Package Expert: indicative acceptable range (example)"

"€650-€1,050, with €1,500 as the upper end."

"What is the implication of differentiated ranges across packages?"

"Each package has a clearly differentiated price range accepted by customers."

"Van Westendorp PRO: speed and simplicity"

"Quick and simple; no complex data modelling required."

"Van Westendorp PRO: WTP corridor"

"Helps narrow WTP to max/min acceptance."

"Van Westendorp PRO: direct consumer price points"

"Allows processing price points directly from consumers."

"Van Westendorp CON: competition blindness"

"Does not say anything about competing products or brands."

"Van Westendorp CON: one product per survey"

"Limited to one product per survey."

"Van Westendorp CON: volume uncertainty"

"Does not provide volume potential at acceptable/optimal prices."

"Van Westendorp CON: rough early-stage tool"

"Offers a rough acceptable range; best for early steps of price definition."

"Van Westendorp CON: purchase reality gap"

"Does not capture whether consumers would actually buy at each price (ignores factors beyond price)."

"What does Gabor Granger help identify/validate?"

"Optimal price points by testing purchase likelihood at specific prices."

"Gabor Granger: what is it (core setup)?"

"Survey WTP for 3-5 specific price points (e.g., 300€, 200€, 100€)."

"Gabor Granger: response options (4-level version)"

"Certainly; Likely; Probably not; Certainly not."

"Gabor Granger: why are min/max price points critical?"

"They determine a meaningful scale to observe drops and locate the optimum."

"What curves can Gabor Granger results generate?"

"Demand, revenue, and margin curves."

"Gabor Granger: when to apply (use case 1)?"

"When you need the specific price point that optimizes revenues."

"Gabor Granger: when to apply (use case 2)?"

"When customers are familiar with prices and respondents match buyer profiles."

"Gabor Granger: how are optimal revenue points used afterward?"

"To derive pricing points aligned with pricing strategy and packaging options."

"Gabor Granger: sample size guidance per segment/module"

"More than 30 respondents; optimally more than 50."

"Gabor Granger: example 5-point likelihood scale mapping (300€ question)"

"5=Would certainly purchase; 4=Would most likely; 3=Undecided; 2=Would rather not; 1=Definitely would not."

"What does Gabor Granger capture especially well?"

"At which price purchase likelihood is likely to drop."

"Gabor Granger: which revenue curve is preferred for decisions?"

"Preferably rely on the revenue curve based on the 'certainly' purchase set."

"Gabor Granger decision rule when revenue is the same (3€ vs 3.5€)"

"Choose 3€ for penetration; choose 3.5€ for margin."

"Gabor Granger insight: revenue optimized at 3.5€"

"Revenue optimized at 3.5€ with minor penetration losses at 3€ and small margin improvement at 4€ (illustrative)."

"Gabor Granger insight: revenue optimized at 4€"

"Revenue clearly optimized at 4€ with sharp decreases on both sides (illustrative)."

"Anatomy of Gabor Granger Step I: what to look at?"

"Steepness of the demand curve (elasticity)."

"How does curve flatness relate to elasticity?"

"Flatter curve = lower elasticity; readiness to accept higher prices."

"How does curve steepness relate to elasticity?"

"Steeper curve = higher elasticity."

"What does demand steepness show in general terms?"

"General elasticity level (high/medium/low)."

"What else must you identify besides elasticity level?"

"Price points where behavior seems to change."

"Example insight: between 3€ and 4€"

"No loss of penetration between 3€ and 4€ (illustrative)."

"Example insight: at 4.5€"

"At 4.5€ there is no more potential (illustrative)."

"Anatomy of Gabor Granger Step II: what to look at?"

"The tipping point in the revenue curve (of the 'definitely buy' set)."

"What does the revenue tipping point correspond to?"

"The revenue-maximization price."

"Why prepare a comprehensive price scale?"

"So minimum and maximum prices are not too short (avoid truncating the optimum)."

"Anatomy of Gabor Granger Step III: what to look at?"

"Distance between 'definitely buy' and 'definitely + might buy'."

"What do low distances (definitely vs might) indicate?"

"Low potential to exploit; customers are quite sure about their price assessment."