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...
by Pim Kneepkens | Mar 12, 2023 | Pricing, Revenue Growth Management, RGM Bites
Price is The Key Driver of Profitability Price Key Driver of Profitability Price has the most immediate impact on top- and bottom-line growth. In fact, research has shown that a 1.0% increase in price leads to a 11.0% increase in profits (ceteris paribus). With...
