I conducted a Van Westendorp Price Sensitivity Analysis for an expanding beauty brand launching a doctor-formulated hair serum targeting Gen Z and millennial women. Working with their marketing team, I designed and distributed a survey to 250 women in the target demographic, showing them product mock-ups and asking four key pricing questions to determine their willingness to pay.

The analysis revealed an optimal price point of $20.40, a point of indifference at $22.74, and an acceptable price range of $18.86 to $29.48. Based on these findings, I recommended pricing the 1 fl oz serum at or near $20.40 to maximize perceived value while maintaining accessibility for the target audience, with options for introductory promotions at the lower end and premium positioning at the higher end for future product extensions.

 A growing beauty brand was getting ready to launch a new product: a doctor-formulated hair serum designed to help women achieve stronger, fuller, and healthier hair. The team had started working on their marketing strategy but wasn't sure how to price the product correctly. Since they were targeting Gen Z and millennial women, they wanted to avoid pricing too high and scaring away budget-conscious shoppers, while also making sure they weren't undervaluing their premium, clinical formula.

After showing me prototypes of the 1 fl oz bottle, they brought me in to find out how much potential customers would be willing to pay. Given the wide range of prices for similar products on the market, we decided to use a Van Westendorp Price Sensitivity Analysis to find the best price range that balances what customers think the product is worth with what they expect to pay.

Working with the brand's marketing team, I created a survey that explained the hair serum's key features and benefits, showing what makes it different from competitors. Even though the final marketing materials weren't ready yet, we gave survey participants a clear and interesting description of the product, including its doctor-formulated approach and specific benefits like strengthening hair and promoting fuller, healthier growth. We sent the survey to women in the brand's target age range to make sure we were reaching the right audience.

Participants also saw professional mock-ups of the 1 fl oz bottle to give them a realistic visual context for the pricing questions. After reviewing the product information, participants answered four key questions for the price sensitivity analysis:

After collecting the survey responses, I ran the Van Westendorp Price Sensitivity Analysis to understand how the target audience valued the product and what price range they found acceptable. While the technical details of the analysis are beyond this summary, here are the key findings:

Among the 250 women surveyed in the target age range, the optimal price point where most respondents felt comfortable was $20.40.

The point of indifference, where equal numbers of participants thought the product was "cheap" versus "expensive," was $22.74.

The acceptable price range, based on where the "too cheap" and "too expensive" responses intersected, was $18.86 to $29.48.

These results provide solid data to guide pricing decisions that match customer expectations and perceived value.

Based on this analysis, I recommend pricing the 1 fl oz hair serum at or near the optimal price point of $20.40 to meet customer expectations and maximize perceived value. This price positions the product competitively while maintaining credibility and affordability for Gen Z and millennial customers.

The brand could also consider introductory promotions at the lower end of the acceptable range ($18.86) to attract first-time buyers, and explore premium positioning or bundling strategies closer to the higher end ($29.48) for future product launches or special editions."