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PRICE

Determining the best price for a product/service is a common market research question.

The Price Sensitivity Meter model (PSM) is a market technique that allows for “perceive value/objective price” relationship to determine consumer price preferences. 

 

The PSM provides parameters that go beyond the simple "right price":

  • the balance point (consumer’s reference price)
  • the optimal point (consumer’s point of view)
  • the acceptable price range (flexibility)

 

 

 

 

 

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