The willingness to pay $100 for an interactive nightlight was deemed to expensive by management and was slanted to be scuttled. It is hard to measure the perceived value when prospective customers have not experienced it.
To convince management, that there was indeed enough demand, a last minute concept validation survey was send to a very small sample of 250. How do you communicate a well-designed product through a survey? We designed a step-wise introduction to the nightlight, presented the possible interactive features via GIFs and eventually ask pricing questions at four different points in the survey. price approach was used to design a custom concept validation survey with a sample of 250.
The step-wise approach allowed a phased introduction of the product and assessment of the perceived value at each step. Mimicking a purchase journey. One method we used to assess willingness to pay was via Van Westendorp price sensitivity method. At the end we revealed the actual price and take-up of the concepts dropped significantly but 23% were still open to purchase the.
Equipped with the data the design team went back to the CEO and got the go ahead. When GLOW light launched a year later demand outstripped supply. Further, the market uptake rate of 23% was confirmed by two subsequent studies that sourcing and marketing did independently. Ultimately the product introduced as loss-leader was so successful that Casper considered a whole line of interactive lights for the bedroom.