Beyond classical van Westendorp: Assessing price sensitivity for variants of algae-based meat substitutes

Food product innovations are characterized by high flop rates. In an early development stage, manifold product formulations seem feasible. To determine the most promising product option, market research can help, but is frequently considered too costly and complex. We assess the applicability of the van Westendorp approach, an inexpensive and simple method, for guiding early product design and pricing decisions for novel foods. Findings from a between-subject experiment for meat substitutes consisting of different shares of micro-algae indicate that micro-algae, while a cost driver, has little effect on price preferences. Implications for novel food product design, market research, and retailing are discussed. •Van Westendorp is an inexpensive and easy method to study price sensitivity.•We assess its applicability in pricing of novel foods and in early product design.•Between-subject experiment investigates optimal price points for product variants.•Share of micro-algae, while a cost driver, is less influential on price sensitivity.•Implications for product design and retailing of alga-based food are discussed.