The standard question sample
The VWS consists of four questions to measure the willingness to pay, each of which is asked of a sample of potential customers. The first question asks respondents to identify the price at which a product or service would be considered so expensive that they would not consider buying it. The second question asks respondents to identify the price at which a product or service would be considered reasonably priced. The third question asks respondents to identify the price at which a product or service would be considered cheap, or a bargain. The fourth and final question asks respondents to identify the price at which a product or service would be considered so cheap that they would question the quality or value of the item.
The responses are then plotted on a four-point scale, with the most expensive price at the top and the cheapest price at the bottom, resulting in a price sensitivity curve. This curve shows the prices at which respondents are most likely to purchase a product or service. The optimal price point is then determined by taking the average of the four points (the most expensive, the reasonably priced, the cheap, and the too cheap prices). This average is considered to be the “sweet spot” of the price sensitivity curve and represents the optimum price point for a product or service.