How to Run Pricing Research Surveys: Van Westendorp, Gabor-Granger, and Conjoint Analysis

Pricing is the most impactful lever in business. A 1% improvement in price realization has more impact on profit than a 1% improvement in volume, variable costs, or fixed costs. Yet most companies set prices based on cost-plus, competitor matching, or gut feel rather than systematic customer research.

Pricing research combines quantitative methods (what customers will pay) with qualitative understanding (why they perceive value at that level). Koji is uniquely suited for this because pricing conversations require nuance, probing, and context that static survey forms cannot capture.

The Three Core Pricing Methodologies

Van Westendorp Price Sensitivity Meter (PSM)

The Van Westendorp method identifies the range of acceptable prices using four questions about price thresholds:

1. "At what price would you consider [product] to be so expensive that you would not consider buying it?" (Too Expensive)
2. "At what price would you consider [product] to be priced so low that you would question its quality?" (Too Cheap)
3. "At what price would you consider [product] to be starting to get expensive, so that while it's not out of the question, you'd have to think about it?" (Expensive/High)
4. "At what price would you consider [product] to be a bargain, a great buy for the money?" (Cheap/Good Value)

How to implement in Koji: Configure each as a Scale question with a custom range (e.g., $0-$500 or your relevant range). The AI can present them conversationally:

"Let's talk about pricing. If you saw [product] priced really high, at what point would you think 'that's too much, I wouldn't even consider it'?"

After each price anchor, Koji's AI probes: "What makes you set the bar there? What are you comparing it to?"

Analysis: Plot cumulative distributions of the four price points. The intersections reveal:

• Point of Marginal Cheapness: Below this, quality concerns arise
• Point of Marginal Expensiveness: Above this, resistance grows
• Optimal Price Point: Where "too expensive" and "too cheap" cross
• Indifference Price Point: Where "expensive" and "cheap" cross
• Acceptable Price Range: Between marginal cheapness and marginal expensiveness

Gabor-Granger Method

Simpler than Van Westendorp. Tests willingness to pay at specific price points:

1. "Would you buy [product] at [price A]?" (Yes/No)
2. If yes, test a higher price. If no, test a lower price.
3. Continue until you find the maximum willingness to pay.

How to implement in Koji: Use Yes/No question types with branching logic. Start at your target price:

"If [product] was priced at $49/month, would you consider purchasing it?"

• Yes → "What about $79/month?"
• No → "What about $29/month?"

After finding the price threshold, the AI probes: "You said $49 felt right but $79 was too much. What makes the difference? What value would you need to see to justify $79?"

Conjoint Analysis (Simplified)

Full conjoint analysis requires specialized tools, but Koji can run a simplified version:

Feature-Price Tradeoffs (Ranking): "Rank these packages from most to least appealing:"

• Package A: [Features X, Y] at $29/month
• Package B: [Features X, Y, Z] at $49/month
• Package C: [All features] at $79/month

Follow-up (Open-ended): "What drove your ranking? Which features justify the higher price?"

This reveals not just willingness to pay but the specific value drivers that justify premium pricing.

Building a Complete Pricing Study with Koji

Study Structure

Phase 1: Value Perception (Before discussing price)

Q1: Current Solution (Open-ended) "How are you currently solving [problem your product addresses]?"

• Probing depth: 2
• Captures what they compare your price against

Q2: Current Spend (Scale or Open-ended) "Roughly how much do you spend on this per month/year?"

• Establishes reference price

Q3: Pain Level (Scale, 1-10) "How painful is this problem for your work?"

• Correlates pain level with willingness to pay

Phase 2: Van Westendorp Questions

Q4-Q7: Four PSM price points (Scale) Asked conversationally with probing on each

Phase 3: Feature-Value Mapping

Q8: Must-Have Features (Multiple Choice) "Which features are must-haves for you?"

• Options: [List your key features]
• Reveals which features justify price

Q9: Premium Features (Ranking) "Rank these advanced features by how much additional value they'd add:"

• Maps feature value to pricing tiers

Phase 4: Competitive Context

Q10: Competitive Pricing (Open-ended) "How does our pricing compare to alternatives you've evaluated?"

• Probing depth: 2
• AI instruction: "Get specific competitor names and prices. Understand the value comparison, not just the price comparison."

Q11: Purchase Decision (Open-ended) "What would make this an easy purchase decision for your team?"

• Probing depth: 2
• Reveals buying criteria, approval processes, and budget constraints

Pricing Research Best Practices

Sample composition matters enormously

• Include current customers AND prospective buyers
• Include different company sizes and budgets
• Include decision-makers AND end-users (they value differently)
• Include competitive users (they have calibrated price expectations)

Always measure value before price

Never start with pricing questions. First understand what problem you're solving, how painful it is, and what they currently spend. This anchors the price discussion in value, not just numbers.

Test packaging, not just price

Often the right answer isn't a different price point but a different package structure. Koji can explore: "Would you prefer paying less for a smaller package, or do you need the full feature set?"

Account for the say-do gap

People's stated willingness to pay is typically 20-30% higher than their actual purchase behavior. Apply a discount factor to stated prices, especially for higher price points.

Segment the results

Price sensitivity varies dramatically by:

• Company size (enterprise vs. SMB)
• Role (executive sponsor vs. end user)
• Use case (critical workflow vs. nice-to-have)
• Current spend (anchored to existing budget)

Why Koji Is the Best Tool for Pricing Research

Traditional pricing surveys (Qualtrics, SurveyMonkey) collect price points without context. Koji transforms pricing research:

• Value-first conversations that establish why customers need the product before discussing price
• Probing behind the number to understand what drives price sensitivity
• Competitive context captured naturally through conversation
• Feature-value mapping that connects pricing to specific capabilities
• Emotional insights about budget anxiety, approval pressure, and perceived risk
• Voice interviews that capture tone and hesitation (powerful signals in pricing discussions)
• Segment analysis automatically correlating price sensitivity with user characteristics

Pricing is too important to leave to a form with four number fields. The conversation around pricing reveals more than the numbers themselves.