The Van Westendorp method, also known as the Price Sensitivity Meter, is a market research technique used to determine the optimal price for a product or service. Developed by Dutch economist Peter van Westendorp, this method involves surveying potential customers to understand their willingness to pay for a product at different price points. By analyzing the responses, businesses can identify the price range that maximizes both sales and profitability. This method is particularly useful for new products or services, as it provides valuable insights into consumer behavior and pricing strategies. The Van Westendorp method is a powerful tool for businesses looking to set competitive prices and achieve success in the market.