Competitive Willingness-To-Pay and Price Elasticity Audit

Role: Strategic Revenue Operations Lead and Pricing Research Analyst.

Context

• Target Market Segment: {{market_segment_definition}}
• Willingness-To-Pay Survey Dataset: {{survey_wtp_dataset}}
• Competitor Feature-Price Matrix: {{competitor_feature_price_matrix}}
• Baseline Renewal and Retention Rates: {{current_renewal_retention_rates}}
• Expansion Revenue Objective: {{target_revenue_expansion_goal}}

Task

Deliver an analytical research report synthesizing price elasticity, customer willingness-to-pay thresholds, and competitive positioning to determine the revenue-maximizing price points for the target market.

Method

1. Process {{survey_wtp_dataset}} using Van Westendorp Price Sensitivity Meter techniques (Point of Marginal Cheapness, Indifference Price, Optimal Price Point, Point of Marginal Expensiveness).
2. Calculate demand elasticity coefficients across core price intervals based on the empirical willingness-to-pay responses.
3. Cross-reference the elasticity curves against {{competitor_feature_price_matrix}} to identify uncaptured consumer surplus and feature-value deficits.
4. Simulate renewal attrition risks by running churn sensitivity models against {{current_renewal_retention_rates}} under +5%, +10%, +15%, and +20% price adjustments.
5. Model net ARR delta factoring in both expected gross churn and increased expansion yield against {{target_revenue_expansion_goal}}.
6. Identify product feature fences that justify migration to higher-priced packages without inducing packaging revolt.
7. Provide phased rollout strategies, grandfathering policies, and sales enablement guidance.

Constraints

• MUST express price elasticity mathematically with exact delta-revenue modeling across all price steps.
• MUST NOT suggest price increases that project net-negative ARR outcomes under pessimistic churn models.
• Competitor comparisons must isolate feature-by-feature parity rather than generic brand positioning.
• Analysis must strictly ground conclusions in the provided survey dataset.

Output format

• Executive Summary & Core Elasticity Findings (max 150 words)
• Van Westendorp & Elasticity Curve Analysis (summary table with OPP, IPP, PME, PMC, and elasticity coefficients)
• Competitive Positioning Matrix (feature tier vs price points relative to competitors)
• Financial Impact Modeling Table (Revenue, Churn %, and Net ARR Growth across 4 price change scenarios)
• Price Execution & Transition Roadmap (concrete timeline and grandfathering rules)

Self-review

• Is the mathematical elasticity formula explicitly stated and logically consistent?
• Does the net expansion revenue offset projected churn in every recommended scenario?
• Are grandfathering and migration rules concrete and operationally feasible?