June 2022 ARVIC

The June 2022 ARVIC virtual conference centered on pricing methodology, delivering concrete guidance on when to use which tools, how to run them correctly, and how to communicate results to clients in ways that actually land.

Choosing the Right Pricing Tool

A recurring theme was that conjoint analysis, while widely regarded as the gold standard for pricing research, is not the right fit for every situation. At least seven common scenarios make it inappropriate or impractical. When product attributes are not yet well-defined, bounded, or changeable, researchers need a credible alternative.

Van Westendorp in Practice

The conference gave detailed treatment to Van Westendorp as Accelerant's preferred alternative. Through a worked example using a cocktail-making appliance concept, the session covered the method end to end, from study design through client delivery. Key practices included:

• Use four survey questions to identify an acceptable price range and an optimal price point, found where the 'too cheap' and 'too expensive' cumulative curves intersect.
• Validate every response before analysis: too expensive must exceed not expensive, which must exceed bargain, which must exceed too cheap. Drop any records that fail this check.
• Always pair Van Westendorp with a supplementary willingness-to-purchase analysis to confirm consistency between the two methods. Never present Van Westendorp as a standalone.
• Communicate to clients that willingness-to-purchase scores are typically overstated in surveys, and that relative differences matter more than the absolute numbers.

Communicating Results to Clients

Delivery and socialization received specific attention. Tailoring report visuals and depth to each client audience is essential. Accelerant's supplementary price-range bar graphic consistently outperforms the traditional crossing-curves chart for client comprehension, making it the preferred format for presenting Van Westendorp findings.