pricesensitivitymeter is an implementation of the van Westendorp Price Sensitivity Meter (PSM) in R, which is a popular method in market research to analyze consumer price preferences and price sensitivity. It also covers the so-called Newton Miller Smith Extension which allows to estimate prices that maximize the trial rate and the revenue.
As of version 0.2.1, this package is available on CRAN.
# install the stable release from CRAN
install.packages("pricesensitivitymeter")
# install the development version from Github
devtools::install_github("alletsee/pricesensitivitymeter")The main function of the package is psm_analysis() which performs all necessary analyses.
## creating example data
tch <- round(rnorm(n = 250, mean = 5, sd = 0.5), digits = 2)
ch <- round(rnorm(n = 250, mean = 8.5, sd = 0.5), digits = 2)
ex <- round(rnorm(n = 250, mean = 13, sd = 0.75), digits = 2)
tex <- round(rnorm(n = 250, mean = 17, sd = 1), digits = 2)
data.psm.demo <- data.frame(tch, ch, ex, tex)
## running the analysis
output.psm.demo <- psm_analysis(toocheap = "tch",
cheap = "ch",
expensive = "ex",
tooexpensive = "tex",
data = data.psm.demo)
summary(output.psm.demo)Van Westendorp, P (1976) “NSS-Price Sensitivity Meter (PSM) – A new approach to study consumer perception of price” Proceedings of the ESOMAR Congress, 139–167. Online available at the ESOMAR website.
Newton, D, Miller, J, Smith, P, (1993) “A market acceptance extension to traditional price sensitivity measurement” Proceedings of the American Marketing Association Advanced Research Techniques Forum.