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Definition

Price sensitivity meter (or PSM) refers to a research method for establishing the range of prices that customers are willing to pay for a product.[1] The technique was introduced by Dutch economist Peter van Westendorp in the 1970s.



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Figure 1 source: Michael Lieberman. "Pricing research: A New Take on the Van Westendorp Model." //Quirk's Marketing Research Review.// June 2015.



References

  1. ^ American Marketing Association. AMA Dictionary.

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