Understanding Price Sensitivity for CrispKing Banana Chips
School
ICFAI University**We aren't endorsed by this school
Course
MARKETING MISC
Subject
Marketing
Date
Dec 11, 2024
Pages
2
Uploaded by MajorSnail4371
Product Overview: CrispKing CrispKing is a premium ready-to-eat snack brand specializing in banana chips. It provides a healthier and tastier alternative to conventional potato chips, catering to health-conscious individuals seeking nutritious yet satisfying snack options. Development of the Price Sensitivity Meter (PSM) The Price Sensitivity Meter (PSM), introduced by Van Westendorp, is a method to understand consumer perceptions of pricing. This survey asks participants four critical questions regarding pricing: 1.Too Cheap: At what price would you question the product's quality? 2.Good Bargain: At what price does the product feel like a good deal? 3.Price for Quality: At what price would you pay for the product, even if it isn't a bargain? 4.Too Expensive: At what price would the product become unaffordable? For CrispKing, 20 respondents participated in the survey, providing valuable insights into how they perceive price and value. Survey Findings The survey revealed the following price ranges associated with consumer perceptions: •Too Cheap: ₹5 to ₹33•Good Bargain: ₹5 to ₹58•Price for Quality: ₹10 to ₹67•Too Expensive: ₹15 to ₹101The findings were represented through a histogram and Van Westendorp's Price Sensitivity Meter Plot, illustrating the acceptable price range. Conclusions 1.Optimal Price Point: The intersection on Van Westendorp's graph suggests an ideal price range of ₹20 to ₹30, balancing affordability and perceived value.2.Consumer Perception: Pricing below ₹10 may create doubts about quality, while prices above ₹50 could be unaffordable for many in the target audience.3.Pricing Strategy: To capture a wide customer base and uphold a premium brand image, CrispKing should price its products within the optimal range identified.
