<P> The cumulative frequencies are plotted, and PSM advocates claim interpretive qualities exist for any intersecting of the cumulative frequencies for each of the four price categories . Note that the standard method requires that two of the four cumulative frequencies must be inverted in order to have the possibility of four intersecting points . Conventional practice inverts the cumulative frequencies for "too cheap" and "cheap". </P> <P> The general explanation of intersecting cumulative frequencies varies . A common description of the intersections is that the crossing of "too cheap" and "expensive" can be the lower bound of an acceptable price range . Some describe this as the "point of marginal cheapness" or PMC . Similarly, the intersection of the "too expensive" and "cheap" lines can be viewed as the upper bound of an acceptable price range . An alternative description is the "point of marginal expensiveness" or PME . </P> <P> Intersections where there is generally more agreement is the point at which the "expensive" line crosses the "cheap" line . This is described as the "indifference price point" or IPP . The IPP refers to the price at which an equal number of respondents rate the price point as either "cheap" or "expensive". </P> <P> Finally, the intersection of the "too cheap" and "too expensive" lines represents an "optimal price point" or OPP . This is the point at which an equal number of respondents describe the price as exceeding either their upper or lower limits . Optimal in this sense refers to the fact that there is an equal tradeoff in extreme sensitivities to the price at both ends of the price spectrum . </P>

Nss-price sensitivity meter (psm)- a new approach to study consumer perception of price