ShopperIQ | Pricing
The Price is Right, Right?
Should a price point be $2.99 or $3.49? Should promotional pricing be 2 for $5 or 2 for $6? Today’s consumers are savvy shoppers and minor price shifts may make a significant sales impact – up, or down.
Pricing communicates specific messages to shoppers – likewise, pricing modifications offer additional impactful cues to shoppers. Price promotions work, because shoppers associate “promotion” with “bargain” – and don’t we all want to believe we are getting a deal?
Most market research anticipates that consumers make rational decisions. That research forces participants to use analytical, rational thinking when, in real life shopping scenarios, consumers use quick, often subconscious thinking!
But behavioral economics tells us consumers are not rational when shopping. Rather than reading all of the copy on a package and processing each of its benefits relative to a competitor’s, consumers instead search for simple cues that bring positive associations to their minds – often subconsciously.
ShopperIQ-Pricing adds confidence to pricing decisions by measuring the impact of varying pricing and promotion strategies on sales prior to store implementation. DI also simulates competitive price changes to anticipate reaction in the marketplace. Testing alternatives on DI’s proprietary virtual shopping platform identifies and validates the impact of pricing variations on actual behavior – not stated intent.
If your price has to be just right and you need research results that measure sales – not intent, it might be time to talk to Decision Insight. Click here and one of our pricing experts will contact you on the double.