by Pim Kneepkens | Apr 28, 2023 | Downturns, Revenue Growth Management, RGM Articles
ADAPT OR PERISH: FIVE STRATEGIC IMPERATIVES TO SURVIVE AND THRIVE IN A POST-INFLATION WORLD Download Consumer packaged goods (CPG) companies are increasing prices in an effort to recover margins due to inflationary costs. To illustrate, the ice cream industry in the...
by Pim Kneepkens | Apr 3, 2023 | Price Promotions, Revenue Growth Management, RGM Bites
The Power of Purchase Limits Anchors in Price Promotions In our ongoing exploration of consumer behaviour we have stumbled upon a fascinating phenomenon reported by Wansink, Kent & Hoch (1998). They have shown that purchase limits act as anchors where consumers...
by Pim Kneepkens | Mar 13, 2023 | Price Promotions, Revenue Growth Management, RGM Bites
Price Promotion Mechanics Matter Anchors in Price Promotions Check out our latest insight! In our previous post, we highlighted how adding super-premium options to the shopper choice set can boost willingness to pay. But did you know the same anchoring effect also...
by Pim Kneepkens | Mar 12, 2023 | Pricing, Revenue Growth Management, RGM Bites
Anchors Can Increase Willingness to Pay Anchors Increase Willingness to Pay Adding a high priced super-premium product to an existing assortment will increase consumer’s overall willingness to pay as the super-premium item(s) will make the regular and premium priced...
by Pim Kneepkens | Mar 12, 2023 | Pricing, Revenue Growth Management, RGM Bites
Consumer Response to Downsizing Pack Price Versus Pack Size Pack size elasticity is about 1/4th the pack price elasticity. Furthermore consumers consistently under-estimate pack size changes, especially if it involves changes in all three dimensions (width, height and...
