Our Van Konan takes the traditional Van Westendorp price model to the next level, allowing add-ons for Max Revenue, Max Sales Frequency, and Max Profit calculations.
Enabling Max Revenue will provide a view of revenue estimation across price points and the optimal price at which revenue is maximized. This requires asking an additional purchase likelihood question of respondents which is presented as a 0-100% slider. For this calculation, an estimated Total Addressable Market size is required; if not specified, it will default to 1000.
Max Sales Frequency
Enabling Max Sales Frequency will provide context of purchase frequency of the product, service, or subscription at different price points and can be applied to revenue calculations if desired. This requires asking an additional purchase frequency question of respondents; the 8-point scale shown to respondents can be adjusted in the survey editor from our preset options. For this calculation, the estimated consumer purchase frequency (hourly, daily, weekly, monthly) and enabling of Max Revenue is required.
Enabling Max Profit will provide a view of profit estimation across price points and the optimal price at which profits are maximized. For this calculation, at least one set of estimated values for unit cost at quantity is required, with the option to add up to ten sets assuming unit costs changes by quantity. Enabling of Max Revenue is required while Max Sales Frequency is suggested but not required.
All required entries for the model to work – estimated addressable market size, purchase frequency, and unit costs – are never displayed to respondents and can be added or modified once fielding is complete. These inputs are used only to inform how questions are asked of respondents to capture the appropriate data and on the back-end by the models to calculate the various metrics.
- Setting up and using Van Konan Research Tests in your surveys.
- A Deeper Look at Van Konan Price Optimization Model.
- Explore the demo to see the results of a Van Konan Research Test.
Written by Brianna Boyer